The Shakedown 2-7-21

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LAST WEEK, S&P 500 (+4.47%)

Monday: +0.39%

Tuesday: +1.14%

Wednesday: +0.08%

Thursday: +0.86%

Friday: +0.30%

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! 

Earnings This Week

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




Many of us spent the entire week staring at LAZR trade in a tight range at support, just for it to give an inside week. But alas, all that watching was not for nothing as we got some great info on the stock. This high beta stock is holding support very well as it spent the last week consolidating. Now, we know that if it's able to break 35 to the upside it should be off to the races. Yes the stop is a few dollars in this lower priced name, but because it's such a high beta name this stock could easily breakout and have a 15-20% day, so relatively the risk is proper. 

Trigger: $35

Stop: $31.49

Target: $47-52+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!

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