The Shakedown 11/25/18


The Damage Continues

After closing last week with a huge reversal and the best earnings names beginning to show great strength, the market appeared ready for a bounce heading into last weekend. Pepper in the usual mixed bag of weekend news, and we immediately sold off as soon as the bell rang this week. Tuesday showed some downside follow through with a gap and go lower and some quiet action to finish the week around the holiday.

The fact of the matter remains the market is in a short term downtrend and all pops have been sharply sold off. I will be pretty hands off, only taking some quick trades here and there to Quarterback some things for the more active guys. I am definitely not throwing out crazy risk in any setup in these more uncertain times. Any trades I do take I will be looking for "singles and doubles" and taking profit more quickly at 2:1 & 3:1 risk/reward, as the probability of home runs is almost non-existent in this environment.

Though the market looks pretty bad I will still be watching closely for a bottom, as the more bearish everyone gets, the more likely that bottom becomes. I got caught with my hand in the cookie jar, coming in this week 30% invested, and quickly regretted it Monday morning. That tells me I need to be more patient and let things hash themselves out.

The 1-2 Combo of poorly received tech earnings & the bottomless floor in oil has not been too kind on the broad market. 

Heat Map of Last Week's Action - Click for Detailed Look

(Same can be said about FB, AMZN, NFLX, GOOGL)

Click Above for Detailed Look at Companies Reporting This Week


This HOLX has sported some stellar earnings growth the past few quarters and kept the trend in tact this past report. They have been flagging below this $74 resistance level the whole month and look like they may be ready to break through new highs. Barring a decent market, I'll be watching this one closely and would be the first thing I'd look to buy on a market rebound. 
Trigger: $74
Stop: $71.89
Target: $80-84+

Hope to see you in the chat Monday!

Watchlist coming in the following email. 

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