The Shakedown 11/17/19

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The market continues to be in grind up mode since we broke above all time high resistance a few weeks ago. The Dow, S&P 500 & Nasdaq all closed Friday at new all time highs. Every single dip has been aggressively bought since October began. The market has been really good to us these past few weeks.

While we could use some digestion in the indices, individual stocks should continue to breakout and give great swing trading action so long as the market continues with this bullish action. The trend is your friend, and the key indice to watch this week is the IWM. The IWM has failed the resistance its testing all year, but with the China-US trade war getting closer to a phase one deal, and after the Federal Reserve has cut interest rates in 3 straight meetings, the macro landscape has certainly changed from the mess we've been dealing with all year. So, is the environment good enough to break through that key $160 resistance level?

We're seeing the market shrug off bad news that, earlier in the year, maybe we would have sold off or seen some more fearful action in the market. The fact we're seeing every dip get bought aggressively means this environment remains quite bullish, until it doesn't. 

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There was a battle for trade of the week between RGEN and SNPS if we're being honest. RGEN just looks like its got a bit more upside compared to SNPS which is a slower mover.

RGEN looks ready for a big time move following an earnings gap up and subsequent daily consolidation to sweeten up the setup with back to back inside weeks. All thats standing in its way are the 100sma acting as resistance, right where it closed Friday. We want to see big volume through 85 here. If you have a larger time frame you can wait for 86 to enter, but 85 has acted as some strong resistance since the day after earnings, so I will look for large volume through that area for an entry.

Since it closed near the entry Friday, if this is to trigger Monday morning you want to give it the proper room to the bottom of the flag incase its just some day trader volume Monday morning. This one looks good for the next few weeks if it can break above these resistance levels.

Trigger: $85

Stop: $81.89

Target: $95-100+

Hope to see you in the chat Monday!

Watchlist coming in the following email.

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