The Shakedown 6/16/19

Healthy Consolidation

Overall, it was a pretty quiet week for the broad market, as major indices gave some healthy consolidation for the most part. It was a positive sign to see, and many charts responded well this week. 

We have the Fed meeting this week and we'll get a much more clear indication of their plan concerning interest rates going forward. The market has been boosted up on the basis that they will begin cutting rates, pricing in aggressive cutting schedules. It could be shaky for the market if Jerome Powell indicates that will not be the case this week. The China Trade story will continue to dominate the news cycle as things can change at anytime.


The software space has been and remains the market leading sector. FIVN is looking to come out of a beautiful descending channel at highs. The tricky part about this setup is the wide day it had Wednesday, with $46-47 being the true support area. I'll look for an entry through $51 and will have tiered stops, hoping I can sneak some cheaper stock in there with a $49.50 stop based off of Thursday/Friday lows. The tighter your stop though, the lower your probability, so have to keep a portion wide with a $47 stop.

Trigger: $51

Stop: $46.89 / $49.49

Target: $60-65+

Hope to see you in the chat Monday!

Watchlist coming in the next email.

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