Two weeks ago it appeared the market was ready for a pullback with how we closed the week selling off ~5% in 3 days. Coming in to last week, we got to see what the market was made of as it tested a key support level, where, if broken, a 5-10% correction was quite likely. How'd the market respond? It held that support level and ripped higher off it, trapping shorts and paying the longs with 5 straight green days, leading to a 4.5% move higher. That was all we needed to see really. The market told us last week it wants to remain in this hyper uptrend.
On a shorter term horizon though, it's difficult to aggressively enter new positions on Monday, coming off 5 straight green days. I wouldn't be surprised to see a buyable dip in the early part of the week. If we retrace half of last week's move, I think that would be a great buying opportunity. Lots of good looking charts out there, but after 5 days up that's generally the case. We learned quickly last week that the trend is our friend.
We got another big week of earnings slated. Some of the highlights this week include CHGG, TWTR, LYFT, UBER, YETI, DDOG, NET, DXCM, FROG, and so many more!
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