Note:
Due to the shortened holiday week, this will be our only intra-week update this week.
Market Update:
The Dow, S&P 500 and Russell 2000 are pulling back after hitting their respective 50 DMA lines, a logical area of resistance which I noted several times over the past few weeks as an important level to watch. Meanwhile, the tech-heavy Nasdaq Composite and Nasdaq 100 continue outperforming on a relative basis and are both trading above that important level.
Important Levels To Watch:
So far, the action remains ok at best but if the bears regain control, markets can easily fall a lot further. On the downside, the next important area of support to watch are Feb’s lows. Conversely, if we get one or two good “up” days, the market condition will improve dramatically and we can easily retest and take out 2018’s high.
Be Open To Any Scenario:
At this point, the market can easily go “either way” and patience is needed to see who will win this tug-of-war- between the bulls and the bears. Until a new trend develops, we have earned the luxury of patience and are happy to let other people get chopped up in this sloppy back-and-fourth environment. Remember, knowing when to be involved is just as important as knowing when not to be involved. Stepping back, for what it is worth, I still think the market will head higher (simply because most people don’t). For now, it will be very healthy to see the major indices all close above their respective 50 DMA lines on Friday. If not, then this choppy/sloppy/sideways to down action will likely continue for the near future.
FLS Portfolio:
We are comfortable with our current exposure and have navigated this little melt-down with grace. Here is a snapshot of the portfolio as of Tuesday’s close:
Positions:
The service owns:
ADBE +82.72%,CAT +45.14%, ISRG +33.77%,
RMD +19.47%, MELI +36.87%
The service will exit:
ADBE @ 165.47, CAT @ 133.71, ISRG @ 359.64,
RMD @ 87.07, MELI @ 310.94
Working Orders:
There are no new working orders today.
Disclaimer:
This analysis contains information from resources believed to be reliable but are not guaranteed as to accuracy or wholeness as of the date of this publication. Past performance is not necessarily indicative of future results. There is always a risk of loss in trading and investing. Opinions articulated are subject to change without notice. This analysis and any opinions expressed are intended for educational purposes only and should NOT BE interpreted as a call for engagement in any transaction involving the purchase or sale of any security or investment product or service. The risk of loss in investing and or trading can be substantial, and traders/investors should carefully consider the inherent risks of such an investment in light of their financial condition. The author, firm, associates, or the firm’s clients may have a position in any of the investments mentioned and their positions are subject to change without notice. Any reproduction or retransmission of any portion of this report without the express written consent of 50 Park Investments is strictly prohibited.
