The Shakedown 8/11/19


Volatility Here To Stay

After a wild week in the market, it's safe to say we'll remain in this volatile environment for the time being. The news cycle surrounding the Trade War with China is getting worse by the day, so the market can take a dive at any drop of a hat in these times. We saw the sell off continue this Monday with markets holding a key support level Wednesday and providing a monster 2 day move to the upside. More trade headlines gave us another weak session Friday, once again proving it's not an overly risk-on environment, however earnings season provides a ton of opportunity that won't be as market correlated. I'm still remaining pretty cautious for now until further notice. 

Earnings season is still going strong with some of the bigger names reporting this week being BABA, CSCO, GOOS, AMAT, NVDA & WUBA.   


Software leader CDAY has been working on this bull flag for months on end. We tried to buy it on earnings day and it gave us a blow off top and spent the next week consolidating below the level. After an inside week below resistance, CDAY could just be ready to go. I'll be watching the $53 area for an influx of volume, and will likely look to tier my stops. 

Trigger: $53

Stop: $50.89/49.49

Target: $60-63+

Hope to see you in the chat Monday!

Another super busy week of earnings ahead!

Weekly Watchlist coming in the following email.

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