The Shakedown 10-18-20

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LAST WEEK, S&P 500 (+0.13%)

Monday: +1.61%

Tuesday: -0.65%

Wednesday: -0.63%

Thursday: -0.12%

Friday: -0.06%

We got a whole lot of choppy action out of the broad market last week. We saw the market look very tired Friday, squeaking out it's fourth straight week of gains. Friday's action was a bit concerning to me, I would not be surprised to see stocks continue to pull in early on in the week.


I will continue to echo the sentiment that this is one of the most headline driven times with so much macro geo-political risk. We're just over two weeks away from the election so I am anticipating to see an increase in volatility entering that event. All eyes continue to be on the progression in the Stimulus deal. Sunday night, Speaker Pelosi set a deadline of Tuesday on whether or not we will see a deal done before the election. They will vote on that potential bill Wednesday and that news will take center stage. Corona cases across the country have upticked to the highest levels since early July so we'll see if the market starts caring about that headline again as well.


Earnings season really gets under way this week with just under 300 companies reporting this week. Should be a very interesting week with heavy hitters like PG, SNAP, TSLA, NFLX, INTC as well as some airlines later on in the week. The best winners of the next quarter will be the stocks that act best on their earnings reports and that's how the big winners like SAIL and PINS this quarter are found. So, it's always most important to be on top of the research game these next 6 weeks or so. 

Earnings Season in Full Force this Week

Click the above picture for a full list of the companies reporting this week

Three Market Leaders I'm Watching this Week

for Clues to Market Direction

Onto Some Setups


Compass Pathways, CMPS, is the first psychedleic drug stock to go public on a US exchange. It's got backing from famed PYPL cofounder Peter Thiel. The London based company researches therapies using the main ingredient in hallucinogenic mushrooms.

We saw this begin to breakout of the wedge Friday with volume dissapating the last few hours of the day, leaving it closing below resistance. The good news is that we get to see if that buying was for real or not early next week with a clear entry point through the inside week high. Looking for big volume to launch this stock through $41. Will likely be using a breakout-type stop below Friday's low at $38 if this goes very early in the week. True support is down at $36 so we will see how this one develops. 

Trigger: $41/41.25

Stop: $37.89

Target: $50-55+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!sha

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