The Shakedown 11/7/21

LAST WEEK, S&P 500 (+2.02%)

Monday:  +0.17%

Tuesday: +0.40%

Wednesday: +0.61%

Thursday: +0.47%

Friday: +0.35%

Stocks gained for the fifth week in a row as the major indices went a very rare 5 for 5 on green days. The good news is the environment has been the 'easiest' we've seen all year in that 5 week time span. The bad news is that conditions heading into the week are quite overbought, which makes new entries this week a bit more difficult. I'm anticipating the 5 week green streak to end this week as stocks could really use some digestion in the form of a pullback or sideways action of some sort.

From an economic standpoint, the October Jobs Report we got Friday boosted optimism on Wall Street as it showed a great uptick from September's disaster of a showing. Nonfarm payrolls rose 531,000 in October, way above the 450,000 consensus. The leisure and hospitality sector led the job gains as demand for travel, dining out, and other experiences is high. This only fuels the need for hospitality workers. Though concerns about inflation and supply-chain issues still lurk, these factors had less of an impact on the labor market in October than many expected. As a result, stocks continued to climb through week end.

The Federal Reserve announced plans to taper its asset purchasing program and said that a hike in interest rates will not take place in the near future, which stocks loved as the crowd was expecting the taper schedule and hopeful on no rate raise anytime soon. They continue to emphasize that inflation is expected to be transitory, and I sure hope so because I just paid 5 bucks a gallon for gas out here in Cali. This Wednesday we have the consumer price index for October, which measures inflation. If Wednesday's data shows inflation is still running rampant, investors could get nervous about an impending rate hike.

We have another big week of earnings ahead of us as the season rolls on. We have the Trade Desk Monday morning, Paypal, Roblox and Lemonade in the afternoon, with a ton of big names like Palentir, Coinbase, Nio, Unity, Yeti, Doordash, Wynn, Disney and many more throughout the week!

Earnings This Week

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




Globus Medical, GMED, supplied a solid earnings beat Thursday night that caused the stock to rip higher during Friday's session. It's staring ahead a major resistance level after it put in an inside week last week, its second in a row. This one is setting up for a great swing entry through the high of that earnings day at 79.50, which is coinciding with the macro resistance area. A few consolidation days would only enhance the setup, but I wouldn't be surprised to see this one go early on this week. Watching that 79.50/80 area for major volume. 

Trigger: $79.50

Stop: $75.89

Target: $90+

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