The Shakedown 9/8/19

Stocks Charge Higher

Stocks broke out of it's 5 week range and got some subsequent follow through when the S&P shot above the important $294 resistance level, squeezing shorts and pushing the market into greener pastures. Both S&P and Nasdaq climbed 1.8% during this holiday shortened week. It was seemingly perfect timing as stocks closed right at the resistance level Wednesday, only for the White House to announce an early October trade meeting with China on the table, which sent futures soaring and never looking back.

This further proves why we obey price action above all else, as everyone and their mother (me included) had a pretty negative outlook on any short term market movement. Powell's comments Friday had the market signaling a September rate cut at the Fed meeting is likely under way at their announcement the 18th.

I am not full speed ahead bullish because we are out of the range, as the market is still quite reactive to any news dropping, but I am putting more risk on to the long side as I see fit. We will see how things develop this week. 

Key Software Names Falling Out of Favor?

TTD, TWLO, VEEV & MDB; stocks within major uptrends look like they could be failing key support levels

Long RP

(DAILY CHART ABOVE)
(WEEKLY CHART ABOVE)

We really couldn't have asked for this RP to setup any better. It feels like weeks and weeks we've been talking about this $65/66 resistance level, only to get back to back inside weeks just below the resistance level. This allows us to get a tight risk entry for a huge macro trade, which is my favorite setup out there. Looking for a high volume break of the $65 figure to get involved.

Trigger: 65
Stop: 62.49
Target: 74-78+

Hope to see you in the chat Monday!

Watchlist coming in the following email.


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