The Shakedown 6/7/20

Before I got into anything stock related, I just wanted to say how proud I am of this community for banding together to raise money for the families of Breonna Taylor, George Floyd, Ahmaud Arbery & the Black Lives Matter Movement. Amazing job everybody, came to $3297.25 for each, thank you so much for contributing.

LAST WEEK, S&P 500 (+4.96%):

Monday: +0.40%

Tuesday: +0.83%

Wednesday: +1.33%

Thursday: -0.26%

Friday: +2.58%

What a week in the stock market with the S&P continuing its run, closing the week up nearly 5% with a 2.5% explosion Friday after a jobs number came in better than expected. What that information tells us, is the market is pricing in a fast recovery following the Covid-19 shutdown. We continued to see the rotation into the more cyclical stocks, which, for the most part are still well off highs. These names can continue to run and lift the market with it.

Still plenty of opportunity out there, it has been paying to stick with your ideas and hold onto stock. The market is overbought, but can remain overbought for periods of time and we haven't seen any real weakness in a few weeks.

Saw a stat over the weekend -- the S&P has been up >3% for three consecutive weeks. Since WWII, that has happened only one other time, September 1982. The S&P was up another 25% from that point six months later.

It appears at this point we'll walk into a Monday gap up, so when coupling that with Friday's massive gap up, it will be tough to get into new positions. We will see how the week goes and where that strength heads. 

Earnings Season Winding Down

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

AMD Long

We have been watching this AMD consolidate for the last couple weeks. After an extremely tight inside week, this looks ready to go through the 54 resistance area and then ideally onto new highs with some big volume coming in. 

Trigger: $54

Stop: $51.79

Target: $60-64+

Hope to see you in the chat Monday!

Watchlist coming in the following email.


Leave a comment