The Shakedown 6-21-20

LAST WEEK, S&P 500 (+1.42%):

Monday: +0.93%

Tuesday: +1.92%

Wednesday: -0.42%

Thursday: -0.40%

Friday: -0.57%

Last week we saw the market face some Monday morning pressure, opening up around the SPY 300 mark which has been a major battleground for bulls and bears. The bulls proved stronger by ripping the market higher off support Monday - Tuesday, only to spend the rest of that week digesting the move.

The Fed announced they would be buying Corporate bonds to continue supporting the market during these tough Covid times, and the market reacted very positively in light of that news.

The market has been somewhat choppy the past couple weeks, but there has still been great action out there. We need to keep finding all the relative strength because there is so much opportunity out there right now.

Something to look out for this week is whether or not the corona-related stocks continue to uptick this week. We made some adjustments last week, started focusing on those names more when we saw their relative strength, and found a monster winner in ETSY among others. We're seeing the market almost split into corona-stocks and non-corona-stocks and their relative strength has been based on how much the media is stuffing it down the nation's throats. 

Earnings Season Winding Down

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

MASI Long

The medical device sector has been one of the strongest this year. MASI has been a strong name and spent the last week going sideways, giving us an inside week. We love executing through inside week highs when it coincides with other trade factors, in this case resistance.

The sideways action of last week is leading to a tight entry this week. We want to see some volume come through the 227/228 resistance area.

Trigger: $227/228

Stop: $219.89

Target: $250-260+

Hope to see you in the chat Monday!

Watchlist coming in the following email.


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