The Shakedown 7-26-20

LAST WEEK, S&P 500 (-0.26%):

Monday: +0.81%

Tuesday: +0.21%

Wednesday: +0.57%

Thursday: -1.19%

Friday: -0.64%

Summer trading! We having fun yet? Super low volume week out of stocks as many names are awaiting their earnings catalyst to make moves. Many names just drifting up and down with the market at this point, which is why we always want to be trading stocks with relatively high volume so we know they are in play. I am personally keeping the risk pretty minimal until we see some more earnings setups out there.

SPY broke that macro resistance level this week and backtested it by the end of the week. At this point we have to watch for either the market to pivot and continue higher, or whether this will be a failed breakout and we see some more selling this week. This could largely be dependent on earnings reactions we see this week.

From a news standpoint, the white house is coming out and saying they'll finalize more economic stimulus this week with another round of proposed $1200 stimulus checks on the table. The market would like for this news to be solidified. Have to keep an eye on all the vaccine news surrounding the market as well.

Big week of earnings upcoming, so there will be lots to do as we get more information surrounding these earnings this week. 

Massive Week of Earnings Ahead

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

We have a MONSTROUS week of earnings ahead with 812 companies reporting this week. There is sure to be a ton of action throughout the week as more companies announce. No sense in buying a company a couple days before they report so I would imagine there will be more and more setups as the week develops.

Google, Amazon & Apple all report after the close Thursday. We know how these guys can be market movers themselves with their behemoth market caps. Their collective earnings will likely force a pretty decent gap (up or down) Friday morning. So keep that in the back of your head this week when getting into new positions and adding risk.

A few of the names reporting this week that we've traded lately:

MMM, FFIV, MEDP, CRSP, MO, EDU, MCD, JBLU, HOG, AMD, AKAM, AMED, BE, DENN, DXCM, EBAY, MASI, OMCL, OKE, PKG, PEGA, STX, SBUX, V, BA, BSX, CME, GRMN, GD, GE, GM, MGLN, SAIA, SHOP, SPOT, SITE, SHOO, CERN, WHD, CTSH, EXEL, FB, PI, LRCX, PYPL, QRVO, QCOM, SFM, SIMO, NOW, TDOC, WERN, AOS, ALXN, AGIO, BLUE, BAX, AZN, CROX, DNKN, LLY, GRUB, ICE, KL, MA, NVCR, PG, SWK, TAL, UPS, YUM, TWOU, GOOG, AAPL, AMZN, TEAM, BEAT, EA, EXAS, EXPE, GILD, PFPT, SHAK, WWE, XLNX, XPO, ZEN, ABBV

IPO market has been so hot. Going to keep an eye on a few names going forward

ACCD Long

With so many big names reporting earnings this week, felt it was best to direct the focus to a recent IPO with a great setup that wouldn't theoretically be affected by outside market factors. If you are taking this trade, you have to understand this is a much thinner name than we're usually trading. The daily setup was so tight though I couldn't ignore this name, even with the small daily volume.

ACCD is a recent IPO in the personalized health and benefits space, which definitely gets a boost with where the world is at in 2020. We want to see massive relative volume take out this 33.50, and sustain expanded volume throughout the day. At the end of the day, I'd like to see a 500k volume day when this breaks out.

Be careful with this name right off the open. It could trigger on small volume and squat back under the level, you see that often in these thin names. Would definitely prefer this to trigger later in the day with an intraday setup, we'll see how it sets up.

Trigger: $33.50

Stop: $31.49

Target: $37-41+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!