1/12 Best Idea For The Week Ahead

The SPY closed up Friday right onto of the 21 ema on the weekly. For the moment it is still safe, but that was a massive bearish engulfing candle and $1 lower and we’re talking about the first close below that level in 15+ months. So to say we’re on the cusp of a big trend change is an understatement, we need a powerful move higher this week otherwise a move lower and we’re breaking down.

This weeks best idea is a defensive name that is trading at one of its lowest valuations in a long time, nearly 20% below the average analyst target. I don’t think it’s time to play offense right now in the market so names like this should be on your radar. I’ve seen 3 unusual trades in the past week on this name and I have a very conservative idea to play it. If the market does get hairy, it could be a good place to hide should we take another leg lower.