The Shakedown 11-29-20

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LAST WEEK, S&P 500 (+2.35%)

Monday: +0.60%

Tuesday: +1.61%

Wednesday: -0.15%

Thursday: Turkey Day

Friday: +0.28%

Hope everyone is enjoying this market because stocks are making incredible moves out there across the board. We're coming off another strong week with both the Dow Jones and Nasdaq hitting all time highs. It seems like any speculative name has been going vertical these past few weeks, haven't seen too many times like this in my career. Definitely enjoy it but don't expect it to be the norm.

Futures look like they're slightly gapping higher heading into Monday. There were a plethora of breakouts last week, not walking into Monday morning looking to be gun slinging, but instead seeing what the market gives us and finding where the relative strength lies.

We have a sneakily big week of earnings with many of the software leaders and "Corona Stocks" reporting. ZM, CRM, VEEV, OKTA, CRWD, SNOW, SPLK, VRNT, ZS, DOCU, DOMO, MDLA, CLDR, PD to name a few.

Stay nimble out there!

Earnings This Week

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

DAO Long

DAO is another Chinese name setting up to break a big resistance level. They're an education-technology company with some very impressive earnings. Last quarter they grew their revenue 173% year over year and gross billings of online courses as well as premium courses were up 229% and 309% respectively year over year.

So we know the growth rate is there fundamentally.

This one is looking to break a massive resistance level in this 32 area as its putting in this mini consolidation over the past 5 days. I love the dissipating volume over the past 6 days since their earnings as well as the inside day Friday. If they want to break out we should know pretty early if the volume is there because it will be much greater than what we saw the end of last week. The more consolidation we get in this area, the better of course, not sure if we'll get it. 

Trigger: $32-33.50

Stop: $29.49

Target: $40-48+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!