The Shakedown 8-30-20

LAST WEEK, S&P 500 (+0.78%):

Monday: +1.01%

Tuesday: +0.22%

Wednesday: +1.00%

Thursday: +0.22%

Friday: +0.66%

Just like that, the last week of summer is upon us folks. Theoretically we should have volume picking back up after Labor day. SPY traded at 58% of its 20 week average volume last week to give an idea of Summer volume levels. But alas, the market continues to grind higher. We have to stick to the script until the market tells us we shouldn't. We're currently gapping up about a half percent in the S&P so if we walk into that type of Monday morning gap up, we know to be patient off the open as that gap loves to fill. 

Apple and Tesla's respective stock splits take effect this week. Tesla closed 38% higher since announcing the split on August 11th and is up a staggering 513% since its March lows. Apple is up 15% since announcing the split in their last earnings report. Generally, we see big stocks like this run after they split their stock, but with such big runs going into the actual splitting, will these guys continue to have the juice to lead the market higher? We'll have to watch how those guys act post split this week.

I say this every week but it's very simple; until we see some real selling, the trend is your friend. Stocks can continue to rise until they don't, so don't overthink it too much.

Earnings Season Winding Down

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

Interesting week fo earnings ahead with notable names like Zoom, MDB, Crowdstrike, Docusign, PD, MOMO, MDLA and so many more reporting.

TAL Long

Chinese names have been going vertical the past few weeks. TAL has been consolidating within a major uptrend beautifully the past 3 weeks and looking like it could be ready to break out of that consolidation. We want to see big volume through last week's high that 77.50 mark. With the market gapping up it could trigger off the open on day-trader volume, so be careful of that Monday Morning Gap Up. Ideally this one gives us an intraday setup through that 78 area, but we'll see how this one sets up. 

Trigger: $77.50-78.25

Stop: $74.89

Target: $86-90+

Click Below for this week's Watchlist

Hope to see you in the chat Monday!

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