The Shakedown 2/16/20

The Run Continues

Shortened week with President's day closing markets Monday. We have seen a theme of the market continuously shaking off negative geo-politcial news during this entire 4 month run. It continues to be difficult to buy up here, but the best stocks continue to rip higher. We will see this trend continue until we get that definitive sell-off, which will eventually happen, but is impossible to time which is evident from this 4 month run up we've witnessed. The SPY is flagging below $340 when we spent the majority of 2019 unable to push above $300. This has been a fast move and the indices desperately need consolidation, but one of the first trading adage's I learned was "the market can remain irrational longer than you can remain solvent."

Not much economic news this week, but once again we're jam packed with about 400 companies reporting earnings over the 4 day span. Keep focusing on the strongest earnings names with the best charts and tightest earnings flags.

Earnings season continues

to dominate this week

Names I'm most looking forward to this week:

Tuesday BMO (before market open)

EXPD, INMD, VMC, WMT

Tuesday AMC

TXG, AJRD, AMED

Wednesday BMO

THRM, ELAN, IART

Wednesday AMC

FIVN, GDOT, ICLR, KL,SNBR, SNPS

Thursday BMO

WIX, DPZ, PCRX

Thursday AMC

WK, BEAT, BAND, EVRG, FSLY, FSLR, PRAH, OLED

QLYS Long

With another phenomenal earnings report, QLYS is ready to break out of this macro pattern. Being a cyber security company in the cloud space, we have seen some of its competitors make huge moves in the past 6 months - like FTNT which is up 50% since the pattern began to break two earnings reports ago.

QLYS reported earnings 2 days ago and the price action has been relatively wide since the report. We were blessed with an inside day Friday and when the macro pattern triggers at 94.50, through earnings day highs, you can play off that inside day low for a stop below 90.

This is the perfect combination of a high beta software name taking out a macro resistance level. The last one of these to trigger was BL earlier this year (chart below)

Trigger: $94.50

Stop: $89.89

Target: $114+

(BL breakout above for reference purposes)

Hope to see you in the chat Tuesday!

Watchlist coming in the following email.


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