The Shakedown 5-27-19

Happy Memorial Day!

After the selling we saw at then end of last week, I don't plan on going into Tuesday with gun's slinging. While markets sold off the latter part of the week, there were a lot better charts than I had anticipated after seeing how major indices closed Friday.

However, it doesn't appear the market is ready to turn just yet, but I will be ready when they are. For the SPY, I will be watching the 280 support level and we'll get a lot of clues seeing how that level is handled for the markets near term. The reality is that the market has been downtrending since the hyper-uptrend pattern officially broke on May 7th. We have a huge support area on the helm so it will be interesting to see what develops there.

Have to keep expecting the headline game to continue, so what I have done to combat that is focus my risk down to much fewer names and have been taking a lot more profit at 3:1 than usual. 


We've been watching this EHTH wedge for weeks now and it finally looks ready to go as it's giving us a tight daily flag at the upper level of the wedge near resistance. Could look for first tight entry through 65 with the inside day it gave us Friday, but the trade really triggers through 66. Three straight quarters of earnings acceleration in this growth name.
Trigger: $66
Stop: $61.89
Target: $78-86+
Hope to see you in the chat Tuesday!
Watchlist coming in the following email.

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