The Shakedown 8/18/19

Stocks Undecided Heading Into Notoriously Quiet Weeks

We had another week full of volatility last week as the buying frenzy Tuesday caused by Trump's decision to delay Chinese Tariffs until December was quickly forgotten following a myriad of negative news items. The whipsaw from the past two weeks has given us a distinct range of support and resistance in the indices. We've seen a solid couple of days but the market faces heavy resistance ahead. I believe a huge key to this market will be the direction of small caps as they've lead the selloffs this year. They held onto a huge support level Friday, so we'll see what can build from there.

These last two weeks of August are notoriously painfully slow and when traders and money managers take vacations, it's during these next two weeks. Don't expect a ton of volume (barring a selloff) and this definitely isn't a time to over trade. Your best bet is keeping it focused to a few of your favorite charts these next couple weeks. 

AMED Long

Our good friend AMED, who paid us dearly during its pre-earnings run, looks to be setting up for us once again. It bounced off a major resistance level of the past and sufficiently turned it into support later in the week. It was a tight inside week when it was all said and done. AMED still has a huge macro resistance level overhead at 140 which is always a plus to me. Going to first look for volume through Thursday's high 134, but the better macro trigger definitely looks to be that 135 area. 

Trigger: $135

Stop: $129.89

Target: $150-160+

Hope to see you in the chat Monday!

Weekly Watchlist coming in the following email.