The Shakedown 10-4-20

LAST WEEK, S&P 500 (+1.55%)

Monday: +1.66%

Tuesday: +1.02%

Wednesday: -0.54%

Thursday: +0.64%

Friday: -0.95%

Huge week for us as we nailed that market bounce last week. The S&P gained 1.55% on the week, we got that bounce we were looking for then we saw some news driven weakness to close out the week. I went into last week super bullish and looking to aggressively buy, I am definitely in 'wait & see' mode heading into this week. 

I haven't seen so many headlines quickly formulate all at once that could all be some sort of market catalysts in their own right. We have to closely watch the Trump-Covid situation, the market doesn't like a sick president. Apparently his condition is rapidly improving but the last update we got, he was taking the steroid dexamethasone, which suggests his condition is fairly serious. We've seen a lot of conflicting stories so far, so who knows what to believe.

There is also the potential Coronavirus Stimulus Bill that could get passed this week. That would be a huge positive catalyst this week.

Thirdly, we got word Sunday that NYC is beginning to close down non-essential businesses in areas of Covid outbreak. The market does not like lockdowns. Do we see "re-opening stocks" relatively weak on the back of that news? Do we see money flow back into the corona stocks?

We'll have to watch how the market handles these headlines early in the week.

Earnings This Week

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

If you noticed last week, there was 1000 setup on the newsletter as that's what the market was giving us. Same scan this week and pretty slim pickens out there in comparison. Tons of information in that

OTRK Long

Catasys Inc aka OTRK is a leading AI and technology-enabled healthcare company. Its Ontrak PRE™ (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages people who aren’t getting the care they need. By combining predictive analytics with human engagement, Ontrak improves member health and delivers validated, durable cost savings to healthcare payers of more than 50 percent for enrolled members.

From a fundamental standpoint, this company has been exploding with growth. Last quarter's sales were up 124%, always love when a company has triple digit sales growth. 

With the second wave of Corona seemingly coming back, as we've seen with NYC announcing closures & Trump catching Covid, I wouldn't be surprised to see the "Corona-names" be relatively strong. These names are characterized as being online or new age digital technology that is further advanced the worse Covid gets. OTRK definitely falls into this category.

An entry is going to be tricky as this stock began to launch off support Friday. I'm hoping this one gives an intraday flag in the $66-67 area so we can buy through that high. 

Trigger: $66-68

Stop: $59.89

Target: $84-88+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!