The Shakedown 5-17-10

LAST WEEK, S&P 500 (-0.71%):

Monday: +0.02%

Tuesday: -1.99%

Wednesday: -1.77%

Thursday: +1.20%

Friday: +0.46%

Last week we saw the market have a much needed controlled pullback, only to find support at previous resistance areas and give us a strong close to the week.

The uptrend in the Nasdaq (QQQ) is still completely in tact after a huge pivot Thursday led us higher into week end. Tech, Biotech & Healthcare continue to be the strongest sectors. We are constantly seeing this market price in "out with the old & in with the new" as names in the internet/digital/software/cloud space continue to go virtually parabolic. These valuations can't last forever of course, but while they're hot, that's where my focus will remain.

Last week's pivot support becomes an important area for this uptrend. If that pivot gets pierced we are very likely going to see more of a chop fest, and volatility to return in a vengeful way, while it still lingers.

Fed Chair Jerome Powell is on 60 Minutes tonight to talk about the state of the economy and what to look at going forward. His transcript leaked enough to say, in layman's terms, "The economy has a long road to recovery, but a Fed mandate to buy individual stocks & ETFs could be a vaccine alternative." What he's saying here is the Fed and the US Gov't will continue to do whatever humanly possible to prop this market up. 

Earnings Season Rolls On

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

Another monster week of earnings ahead!

AMED Long

A few of us hopped in this AMED a before the close Friday. This stock appears ready to make a run back to 200 and began that run Friday. After a $60 pull in from April's highs, AMED had a muted reaction to earnings. Since, it has consolidated on the daily chart in a very tight manner over the past couple weeks and appears ready to break higher.

Still plenty of opportunity in this one. I will either look to add stock through 185 if we see a volume thrust through that area. I would not be opposed to buying a mini pullback against the flag's lows at 174 if given an intraday opportunity.

Trigger: $185

Stop: $173.89

Target: $210-215+

Hope to see you in the chat Monday!

Watchlist coming in the following email.