The Shakedown 5/9/21

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LAST WEEK, S&P 500 (+1.16%)

Monday: +0.22%

Tuesday: -0.62%

Wednesday: +0.80%

Thursday: +0.80%

Friday: +0.73%

Stocks began to pullback off the elevated levels the indices are trading at in the beginning of last week, only to be vehemently bought up off the first support level on Thursday/Friday to end the week. The broad market, macro uptrend remains in tact after the action we saw to end the week. While we did begin to see tech names and the QQQ begin to mount a comeback, it's clear the relative strength is still in the value/reopening sectors like retail/energy/financials etc.


Though market's are at or near highs, it's still not the time to be overly aggressive with risk. It's of the utmost importance to be in relatively strong stocks and not to have a shotgun approach with risk as selectivity is the name of the game in 2021. We've seen, for the most part, great earnings get sold off as it's been a difficult start to earnings season. We have another big week this week with some of our favorite names reporting.


A few names I'm looking forward to reporting this week are RBLX, AFRM, WIX, YETI, ABNB, DASH, U, FUBO, among many more!


Overall, patience and selectivity have been the two most important traits for winning in the 2021 stock market. 

Earnings This Week

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



DRI Long

With reopening stocks continuing to show the most relative strength out there, Darden Restaurants (DRI) off of support make sense as one of the best setups to focus on this week. With some favorites like Capital Grille and the breadstick machine Olive Garden in their portfolio, this stock is ripe to take advantage of the economy opening.

From a technical standpoint, DRI is making a great support buy setup as it's pulled in to it's uptrend's support. Watching for an entry through 144 this week against pivot support as this stock looks to get back in its uptrend and make new highs soon.

Trigger: $144

Stop: $139.89

Target: $159-170+

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