Trading Experts Shake Down

Trading Experts

TE Shakedown 6/18/17

We're changing the name of the newsletter ... it's called #branding, ever heard of it?

Another mixed bag this week for stocks. 

We saw tech weak with the "safety stocks" leading the way once again this week. When the market sells off, you see a 'flight to safety' in the less volatile names like utilities & industrials. When a leader like AAPL is the weakest stock around on no out-of-the-ordinary news announcements, that is a huge clue to me that the market is shaky. 

Often times, you can get more information out of an overall market by looking at the top 10-15 leaders rather than judge things by a massive indices like the S&P 500. 

That being said, Mega Caps, financials & energy all held up really well and were first to go green on most down days. 

Onto Some Charts!

To really show the influence AMZN can have on entire sector's -- let's look at some major food companies that will be affected by this 

I guess the lesson here is: if you're going to compete with Amazon --- you're going to have a bad time

Trade of the Week: MET Long

So last week we had MET on the radar for a descending channel break and passed on the setup because it didn't give me the sideways action I love. Fortunately, it went sideways all week giving us a very clean entry. 

Trigger: $53.65

Stop: $52.40

Target: $57-58+

After going through the usual 3000-4000 charts, the main consistency I saw was SLOP & CHOP. The market has been on an incredible run, so when I see leaders getting smoked left and right, I tend to be more hands-off. I am taking the subtle clues the market is sending with the weakness in key names.

You can even get a lot of information out the newsletter not having a ton of setups --- there aren't many good looking charts out there compared to previous weeks. So I'm heavily cash right now and will be extra selective when initiating trades until things start to look a little better.  

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