The Shakedown 12/29/19

Never Short A Dull Market

The market appears it wants to grind higher into year end, proving the old adage of "never short a dull market," to be true. The market is just riding a major uptrend right now, so the best course of action is to remain long and strong until we see some real selling. We are definitely in need of a pullback in the indices at some point soon, but as we can see over the past two weeks, timing that will be the difficult part.

Right now the trend remains our friend until we see different. We have a holiday shortened week with the market closed for New Years Tuesday. I would anticipate this to be another low volume week as the whales are taking advantage of the holiday still.

Time to get in the right mindset for 2020!!!

Earnings season ramps right back up again in the third week of January. Here's a look at the schedule for the month ahead.

LH Long

LH has been in a massive channel for the past 6 months. It is setting up to give a tight risk entry in the $170 viscinity, with the channel resistance overhead at 174. If this week gives the entry through 170 that goes straight to the 174 area, if will be tough to buy 174. So, with the tight consolidation over the past two weeks, the entry through 170 could yield massive upside if it leads to a break of the channel.

The weekly chart shows the back to back tight weeks of consolidation, giving us an entry above the recent week's highs. This is showing a great risk/reward opportunity on our hands.

Trigger: $170/170.25

Stop: $167.49

Target: $178-183+

Hope to see you in the chat Monday!

Watchlist coming in the following email.


3 comments

  • Hi

    Timothy
  • I need a trial

    Katherine Puchot
  • I’m interested

    Robert

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