Trading Experts Shakedown from BALI!

Trading Experts

TE Shakedown 8/13/17

Coming live from Bali, Indonesia! 

It looks like I picked a good week to be on vacation! Last week's newsletter hammered home the underlying weakness in the 'risk-on' stocks such as the nasdaq and tech stocks. After a fake out move higher Tuesday, stocks met their maker Thursday with the second biggest down day of the year. You know it's been a good year when a 1.4% down day has people wondering if it's time to get short. Not so fast there Sparky!

The SPY is testing trendline support that has been pretty relevant this whole year -- so the $246 area is the first spot to watch. One look at the SPY weekly chart (2 down) and you can see the major uptrend is still VERY much in tact. We have been going virtually straight up this year so this action is healthy.

We may be moving to a bit of a headline driven market with all the Geopolitical News coming out of North Korea, so it will be interesting to see how the market reacts to these events going forward.

Fear Mongering Headline of the Week

Yikes ^ Ugly week there

Long term stocks are fine -- but in regards to the short term, I would not say this is the time to push it. Remember, you don't have to make money every single day in the market to be successful. BUT, you need to capitalize on your winners and when the market is hot -- and learn to pump the brakes when it cools. Many charts have been damaged in the sell off so I am in no rush to hit the buy button until things show their face. 

Onto some charts!

Trade of the Week: NBIX Long

NBIX beasted earnings last week which subsequently put it on our radar as it made a 10% move towards this huge resistance level at $55. (Check out the monthly chart below to see its importance -- what a flag!) With some consolidation around the level on the daily chart, this bio may be ready to finally break above this level. You want to see HUGE relative volume in a name like this when it goes.

Trigger: $55

Stop: $52.99

Target: $65+

A lot of ugliness out there after looking throughout the market! It is very important to recognize relative strength on the huge down days -- and hone in on those charts in the days/weeks to follow. You will begin to see the relatively strong names take off like a rocket ship when the market settles down. 

I'm still in Bali for another week so I'll continue to check in when I can. 

Remember there are times to push it and times to pump the brakes -- right now is looking like the latter! 


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