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.