What Will 2019 Hold for Leading Stocks?

Hi, I’m Andy! I’m a freelance writer and restaurant manager, and I have also been following ChartYourTrade.com since the day it launched. This post is a review of the performance of the 10 Elite Stock Setups that Adam sent to his Advanced Stock Reports subscribers on Saturday, December 29, 2018. Each setup comes complete with annotated charts highlighting the advanced entry point and support level(s), as well as all of the necessary fundamental information.

Despite missing New Year’s Day on Tuesday, there was still plenty of action happening both early and late this week. We saw two of our stock setups rocket up through Adam’s entry points to close out 2018, and then we saw two more work their way above buy points at the end of the first week of 2019.

In addition to the four stocks that triggered their buy points this week, there were also quite a few that held up better than the overall market at different points throughout the week. Let’s jump in and see how each of our 10 elite stock setups did this week.

The General Market

In order to properly evaluate what each of our ten elite stock setups did this week, we need to look at them with the context of the general market fresh in our minds.

After closing out the year with a pretty calm day on Monday, the market opened 2019 lower on Wednesday before buyers showed up to push prices higher. However, the exact opposite happened on Thursday when the market opened lower again and those buyers failed to come in as they did on Wednesday.

Friday was an entirely different story as the market opened higher and then climbed throughout the day to close right near the high of the week.

This puts the market well off of the lows we saw before the Christmas holiday, but it still has some serious work to do if it wants to get back above the 50-day and 200-day moving averages.

CIENA Corp. – Triggered

CIEN was able to post a strong day on Monday to close out the year. Then, after following the market a bit higher on Wednesday and then lower on Thursday, the stock shot off like a rocket on Friday and made it all the way up to close right at Adam’s entry point.

It currently sits well above its rising 50-day and 200-day moving averages and looks to be one of the strongest stocks in a market that is finally beginning to show some signs of life.

Workday, Inc. – Triggered

WDAY was another stock that triggered Adam’s entry point this week, and it did so in pretty much the same way that we saw from CIEN. The stock was able to follow the market higher on Wednesday, pulled back with the market on Thursday, and then took off higher closing up above the entry point on Friday.

In addition to breaking through and closing above Adam’s entry point, WDAY is also seeing its 50-day moving average start to pull away from its 200-day line, which is always a sign of strength in a market that might be starting to recover.

Wayfair Inc. – Did Not Trigger

Things weren’t great for all of our stock setups this week, and W was one of the two on our list that went against the general market and posted a loss on the last trading day of 2018. The stock was able to flow with the general market during the first few trading days of 2019, but the losses on Thursday were significantly larger than the gains on Wednesday or Friday.

W never even got close to challenging Adam’s entry point this week, and it’s 50-day moving average is continuing to pull down from its 200-day moving average.

Eli Lilly & Co. – Triggered

If you were following along with Adam’s stock setups throughout the week, you were excited to see that LLY managed to trigger its entry point as the year came to a close on Monday.

However, 2019 has not been great for the stock thus far. It opened the year below its entry point, then continued lower on Thursday and was unable to recover on Friday.

Looking forward to next week, LLY is still above both of its significant moving average lines, and it is right within striking distance of breaking through Adam’s entry point once again.

Merck & Co., Inc. – Did Not Trigger

MRK was another stock that finished 2018 strong on Monday as it closed the year right below Adam’s entry point. But just like we saw from LLY, the stock started off 2019 with two straight losses that saw it drop below its 50-day moving average on Thursday.

A big positive day on Friday brought MRK back above its 50-day line. The stock was able to recover all of its losses from Wednesday and Thursday, and it is sitting right below Adam’s entry point heading into the first full week of 2019.

Church & Dwight Co, Inc. – Did Not Trigger

Over the past few weeks, we’ve seen a lot of stocks that were able to demonstrate strength despite the fact that they didn’t break through Adam’s entry point. CHD was one of those stocks this week.

After closing out the year on a positive note Monday, the stock fell below its 50-day moving average on Wednesday and failed to recover on Thursday. However, it still held up better than the general market on Thursday and was then able to close back above its 50-day line after a positive move on Friday.

CME Group Inc. – Did Not Trigger

CME had a very similar week to what we saw from CHD. After finishing last year on a positive note, the stock opened 2019 with a down day. Then it lost its 50-day moving average with a big drop on Thursday. It rebounded on Friday to close just above that critical 50-day moving average.

This certainly wasn’t a good week for CME, but just like we saw with CHD, it is sitting above rising 50-day and 200-day moving averages and isn’t too far from that entry point line.

Omega Healthcare Invs, Inc. – Did Not Trigger

OHI was one of the closest stocks to the entry point that Adam identified for it coming into the week. But after a down day on Monday, it gapped down below its 50-day moving average on Wednesday.

The stock was able to recover most of those losses on Thursday and Friday, but OHI is still sitting just below its 50-day moving average, as well as Adam’s entry point.

VMware Inc. – Triggered

VMW was the wildest stock on our list by a mile this week. After shooting up through Adam’s entry point on Monday, it started out the new year with a down day on Wednesday followed by another big loss on Thursday.

The stock was able to recover on Friday and closed well above that entry point right at the high of the week. It now sits well above both significant moving averages, and its 50-day line is starting to separate from its 200-day line.

Finisar Corp. – Did Not Trigger

FNSR started out the week tracking right along with the general market, but after Thursday’s losses took it right down to its 50-day moving average, it was unable to bounce off of that line while the general market was heading higher on Friday.

In a perfect world, we would obviously like to see more than four of our elite stock setups get above Adam’s entry points in a given week. But we don’t live in a perfect world, and the market has been rough across the board for the past few months, so the signs of strength that we did see this week are definitely worth noting moving forward.

Make sure you subscribe to Adam’s Find Leading Stocks newsletter to get this weekend’s updated list of stock setups, as well as his FLS Playbook that breaks down what our model portfolio is going to be doing in the week ahead.

Week Ahead: Stocks Rally As Fed Shifts Back To A Dovish Stance

Stocks Rally As Fed Shifts Back To A Dovish Stance:

Stocks soared on Friday after the Fed backpedaled and adopted a dovish stance. Interestingly, that came on the same day that the December jobs reported easily blew away estimates. Clearly, the Fed is more concerned with asset prices (stocks, bonds, commodities, and real estate), than other economic data. But that is not necessarily a bad thing. After all was said and done it was another volatile week on Wall Street but stocks managed to end higher which is a near term bullish sign. The market is bouncing from deeply oversold levels and remains way overdue to bounce. The next level of support to watch are December’s low while the next level of resistance is the 50 day moving average line. Remember, in healthy bull markets, we do not normally see 700-1000 point daily swings in the day. But that does happen in bear markets. We are entering earnings season, so keep that in mind over the next few weeks.

Monday-Wednesday Action:

Stocks rallied 200 points on Monday on the last trading day of 2018. Stocks fell in 2018 and logged their worst year since 2008. For the year, the Dow Jones Industrial Average fell 4.16%, the S&P 500 fell 4.98%, the Nasdaq Composite fell 4.49%, and the small-cap Russell 2000 fell 10.06%. It is important to note that they are all down near 20% from their record high set in late 2018 and the longest bull market in history ended in December 2018. Stocks were closed on Tuesday for the holiday. Stocks opened 400 points lower on Wednesday but turned higher as buyers showed up shortly after the open. Stocks opened lower after The New York Times reported that U.S. Trade Representative Robert Lighthizer has told friends and associates he wants to prevent President Donald Trump from accepting “empty promises” from China. The report also said that Mr. Lighthizer has warned Trump that additional tariffs may be needed to get meaningful concessions from the Chinese. In other news, China said its manufacturing index fell to 49.7 from 50.2 in November. That was the latest piece of weaker than expected economic data from China. After the bell, Apple slashed its outlook and said it expects to sell fewer phones and watches due to sagging demand.

Thursday & Friday Action:
Stocks plunged over 660 points on Thursday after Apple spooked the market with its disconcerting and well-timed news. Notice, that Apple decided to hold off and make the announcement on the first trading day in 2019, this way 2018 would not be “that bad.” Tactics like this are important to note because it is not a mistake when information like this is announced. In other news we are beginning to see economic data slow down which is bearish for both Main Street and Wall Street. Stocks soared on Friday after the Fed backpedaled and adopted a dovish stance again. Interestingly, that came on the same day that the December jobs reported easily blew away estimates. Clearly, the Fed is more concerned with asset prices, than other economic data. 

Market Outlook: Flirting With A New Bear Market
The bulls are doing their best to rescue the market from falling any further. The market was extremely oversold and is currently bouncing to help work off that oversold condition. Resistance is the 50 and 200 DMA lines & then 2018’s high. As always, keep your losses small and never argue with the tape.

FLS Setups Review: Ending 2018 With a Bang

Hi, I’m Andy! I’m a freelance writer and restaurant manager, and I have also been following ChartYourTrade.com since the day it launched. This post is a review of the performance of the 10 Elite Stock Setups that Adam sent to his Advanced Stock Reports subscribers on Friday, December 21, 2018. Each setup comes complete with annotated charts highlighting the advanced entry point and support level(s), as well as all of the necessary fundamental information.

The holiday-shortened week started out ugly for the market, but buyers were the ones who showed up during the last three trading days of the year.

Unfortunately, it is going to take more than three good days for leading growth stocks to recover from the carnage that we have seen on Wall Street over the past few months.

So with that in mind, let’s dive into this week’s FLS Setups Review.

The General Market

In order to properly evaluate what each of our ten elite stock setups did this week, we need to look at them with the context of the general market fresh in our minds.

The market started out the week the same way it finished last week with a down day on Monday, but then things turned around when we came back after the Christmas holiday.

Wednesday, Thursday, and Friday were all positive days for the general market, and we closed out the year on a more positive note compared to what we have seen over the previous few weeks.

Hershey Foods Corp. – Did Not Trigger

HSH was not able to trigger Adam’s entry point this week, but it did manage to recover quite a bit of ground after starting out the week by digging a hole for itself.

Following up that big down day on Monday, the stock was able to rebound with positive days for the rest of the week and briefly peaked its head up above its 50-day moving average on Friday before closing just short of that line.

Church & Dwight Co, Inc. – Did Not Trigger

CHD was not about to make its way up to Adam’s entry point, but after following the general market down on Monday, it rebounded quickly and jumped above its 50-day moving average on Wednesday.

The stock then continued higher on Thursday and Friday as it continued to gain ground on its moving average lines heading up towards Adam’s entry point.

Dell Technologies Inc. – Did Not Trigger

Not only did DVMT not trigger Adam’s entry point, I actually did a double take looking at its chart because it looked like it didn’t trade at all this week.

On a second look, it turns out the DVMT did trade this week, it just did so well below both its 50-day and 200-day moving averages. After dropping like a rock on Monday morning, the stock pretty much just sat there for the rest of the week.

An even deeper dive shows that DVMT stopped trading as part of a Class V transaction designed to simplify the structure of the corporation.

CME Group Inc. – Did Not Trigger

After closing below its 50-day moving average last week and then opening even lower to start this week, it was hard to imagine a world where CME would be able to challenge Adam’s entry point during the holiday-shortened trading week.

However, the stock was able to recover nicely with a big up day on Wednesday. Then it took off even higher on Thursday, jumping back above its 50-day moving average. Things got even better on Friday as CME showed more strength.

Ameren Corp. – Did Not Trigger

Despite a lot of red bars last week, AEE was able to hold its 50-day line and looked like it might have a chance to bounce off of that line up towards Adam’s entry point this week. Unfortunately, that did not happen.

The stock sliced through its 50-day line on Monday. It did manage to recover on Wednesday and Thursday, but it fell back against the tide of the general market on Friday.

American Tower Corp. – Did Not Trigger

We have spent a lot of time highlighting stocks that didn’t trigger Adam’s entry point but still showed strength in recent weeks, and AMT was one of those stocks this week.

After falling below its 50-day moving average on Monday, the stock recovered and almost regained its 50-day line on Wednesday. Then it tried again and succeeded on Thursday before finding support there during Friday’s trading session.

Welltower Inc. – Did Not Trigger

WELL acted an awful lot like AMT in that it held up well despite not getting up to Adam’s entry point this week. Just like AMT, WELL lost its 50-day moving average on Monday only to reclaim it and then find support there later in the week.

Barrick Gold Corp. – Did Not Trigger

Speaking of finding support at the 50-day moving average, ABX was another stock that didn’t challenge Adam’s entry point, but it wasn’t all that far away from it either.

The stock bucked the trend of the general market by posting an up day on Monday, and then things held up strong on Wednesday and Thursday before selling came in on Friday. However, ABX was able to find support at its 50-day line, which is always a sign of strength in this type of market environment.

These last few days were definitely a positive in the market, but we also have quite a bit of work to do in order to recover from the damage that we witnessed throughout the month of December. I don’t know about you, but I can’t wait to see what happens heading into 2019.

Make sure you subscribe to Adam’s Finding Leading Stocks newsletter to get this weekend’s updated list of stock setups, as well as his FLS Playbook that breaks down what our model portfolio is going to be doing in the week ahead.

Week Ahead: Stocks Trim Monthly Losses As 2018 Comes To An End

Stocks Trim Monthly Losses As 2018 Comes To An End:

The market is deeply oversold and trying to bounce as 2018 comes to an end. 2018 will go down in history as a crummy year for Wall Street. The year began with a strong rally as 2017’s record run continued into January 2018. Then, out of nowhere, sellers showed up in February and the market quickly fell into a correction. That was short-lived as the bulls showed up and spent the next 6-8 months sending stocks to fresh record highs. Then, in August-September, the major indices topped out and stocks plunged into a new bear market in the fourth quarter of 2018. In fact, December was on track to be one of the worst December’s since the Great Depression (until the plunge protection team was called in to help on Christmas Eve). Remember, the last week of the year has a very strong upward bias. The big question is what will happen in January. Unless, we see a massive change in either monetary or fiscal policy, odds favor lower prices will follow. Conversely, if we get clarity on any of the big issues that has been weighing on the market this could be a very shallow and short-lived bear market. Until then, this appears to be another violent bounce in a bear market. 

Monday-Wednesday Action:
On Monday, stocks plunged again as investors continued to aggressively dump stocks. Treasury Secretary Mnuchin called the CEOs of major banks to shore up confidence as sellers continued to pound stocks. The last full trading week of 2018 was the largest weekly decline for Wall Street since 2008! The Russell 2000 and the Nasdaq Composite both fell into bear market territory and that clearly is spooking major investors. Stocks were closed on Tuesday for Christmas. Not surprisingly, one day after Mnuchin called the Plunge Protection Team, the Dow soared 1,000 points! That is not an insignificant sum and it was the largest single day advance since the financial crisis. Remember, the biggest up moves occur during bear markets so it is not surprising to see the market rip higher as we enter the early stages of this bear market.

Thursday & Friday Action:
On Thursday, stocks opened sharply lower and fell over 600 points before another late day reversal appeared out of nowhere and sent the market closing up over 200 points. That ladies and gentlemen is the definition of the plunge protection team. In the short term, clearly the call Mnuchin made on Monday is working. The only question now is how long will this little rally attempt last? Remember, stocks are extremely oversold and way over due to bounce. Next week is another shortened holiday week and the real test will be to see how stocks act in January, because historically, December has an upward bias, but January can go either way. 

Market Outlook: Flirting With A New Bear Market
Stocks are forming a big top and are beginning to roll over and officially hit bear market territory. Resistance is the 200 and 50 DMA lines & then 2018’s high. As always, keep your losses small and never argue with the tape.

FLS Setups Review: The Bear Has Officially Arrived

Hi, I’m Andy! I’m a freelance writer and restaurant manager, and I have also been following ChartYourTrade.com since the day it launched. This post is a review of the performance of the 10 Elite Stock Setups that Adam sent to his Advanced Stock Reports subscribers on Friday, December 14, 2018. Each setup comes complete with annotated charts highlighting the advanced entry point and support level(s), as well as all of the necessary fundamental information.

It was another absolutely brutal week on Wall Street. Just about everything was down, including all ten of Adam’s elite stock setups. But if you are modeling your trading after his model portfolio like I am, then you were 100% in cash a few weeks ago and haven’t had any exposure to this treacherous market.

Despite the fact that the market is getting slammed right now, and the fact that it’s a holiday weekend, we still need to be on the ball in building our watchlists so that we know what leading stocks to target when things eventually turn around.

So with that in mind, let’s dive into this week’s FLS Setups Review.

The General Market

In order to properly evaluate what each of our ten elite stock setups did this week, we need to look at them with the context of the general market fresh in our minds. And that context was not very good this week.

Outside of a slightly positive day on Tuesday, everything was red for the bulk of the week. And those down days got worse as the week progressed with Friday seeing the market break into new low ground.

With that type of selling action, we aren’t expecting any of Adam’s elite stock setups to be making much progress this week. But anything that was able to hold up or minimize losses could be something to put on a watchlist for when the market inevitably starts chugging higher again.

McDonalds Corp. – Did Not Trigger

MCD looked like one of our best bets for triggering Adam’s entry point coming into the week, but it posted losses on each of the first three trading days bringing it right back down to its 50-day moving average.

Rather than bounce back up off of that 50-day line on Thursday, it sliced down through it and posted a fifth straight negative day. However, things got a little bit better on Friday as MCD was able to hold up with a slight gain despite the negative market environment.

Dell Technologies Inc. – Did Not Trigger

Despite starting right below Adam’s entry point, DVMT failed to make it into positive territory this week. The stock pretty much mirrored the general market with Tuesday being a slight up day surrounded by red bars.

In a market that doesn’t have much to hang its hat on, the fact that DVMT is still holding above its 50-day moving average should be considered a major sign of strength that deserves taking notice moving forward.

Express Scripts, Inc. – Did Not Trigger

ESRX was not able to get above Adam’s entry point, but it did manage to hold it’s 50-day moving average during the first two days of the trading week.

Things turned south on Wednesday as it lost the 50-day line. Then it struggled to retake that key line before falling back below it again on Thursday and then falling even more on Friday.

21st Century Fox Inc. – Did Not Trigger

FOXA was not able to challenge Adam’s entry point this week. It actually wasn’t able to challenge much of anything as it posted five straight down days with some wild daily ranges coming into the picture later in the week.

This has been one of the strongest stocks in the market for the past few months, but after falling below its 50-day moving average on Friday, it will have to start posting some positive action if it is going to remain a leader, even in a difficult market.

CME Group Inc. – Did Not Trigger

CME was another stock that didn’t trigger Adam’s entry point but still put up a fight against the general market pulling it down throughout the week.

The stock got off to a rocky start with a down day on Monday followed by another down day that gave up its 50-day moving average on Tuesday. But CME fought back on Wednesday and was able to close back above that 50-day line.

Unfortunately, things took a turn for the worse with down days on Thursday and Friday leaving it below that key line to close the week.

Hormel Foods Corp. – Did Not Trigger

If it is possible for a stock to crash through its 50-day moving average on a Monday and never even come close to Adam’s entry point but still look strong, that is the story that HRL tried to tell this week.

Monday was brutal, but the stock was able to post a small gain on Tuesday and relatively small losses on each of the remaining trading days this week. That left it sitting just below the 50-day line and still well above the 200-day line.

American Tower Corp. – Did Not Trigger

After falling in dramatic fashion on Monday, AMT was another stock that never came close to Adam’s entry point this week.

The stock did manage to post positive days on Tuesday and Wednesday, but it fell again on Thursday before crashing all the way back to its 50-day moving average on Friday.

On a positive note, AMT was able to hold right at its 50-day line, which we have already seen is an impressive feat given the overall market conditions.

Clorox Co. – Did Not Trigger

CLX was another stock that stumbled out of the gate with a massive down day on Monday and never made it back to where it started the week, much less trigger Adam’s entry point.

But after posting three more down days in the middle of the week, the stock was able to make up some ground on Friday. It wasn’t able to hold above its 50-day moving average though and closed the week back below it.

Coca Cola Co. – Did Not Trigger

KO also failed to challenge Adam’s entry point this week. It actually started out the week with four straight losses that saw the stock give up its 50-day moving average on Thursday.

After an attempt to retake that 50-day line on Friday, it fell again and closed back below it, but still in positive territory for the day.

Wayfair Inc. – Did Not Trigger

W was one of the ugliest stocks on our list this week. Not only did it fail to challenge Adam’s entry point, it actually posted losses on each of the five trading days this week, bringing its current streak to seven straight down days. 

The stock currently sits well below both its 50-day and 200-day moving averages. And as Gary Kaltbaum often says, nothing good can happen for a stock that is living below its 200-day line.

It’s hard to identify relative strength in a market that is getting slaughtered almost every single day. None of our elite stock setups were able to break out this week, but some held up better than the general market. Those will likely be the ones to watch for when the market inevitably turns around.

Make sure you subscribe to Adam’s Finding Leading Stocks newsletter to get this weekend’s updated list of stock setups, as well as his FLS Playbook that breaks down what our model portfolio is going to be doing in the week ahead.

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