Market Update: Chop City
On Tuesday, I wrote, “The market needs one more “push” higher to help the major indices all breakout and go topside.” Shortly after I hit send, Tillerson was fired and all the other lovely headlines were announced which clearly sent stocks lower. Honestly, the fact that the market is not “down” a lot more is impressive considering the lead story on WSJ.com right now is: “Trump Considers Measures to Pressure Beijing on Trade.” Clearly, the market needs more time to get clarity on what all this will mean for the global economy and capital markets. The S&P 500 closed on its 50 DMA line while the Nasdaq, Nasdaq 100 and Russell 2000 are still above that important level. The Dow is the weakest, on a relative basis, and is still below that level. If the selling accelerates over the next few days, then we can easily retest Feb’s low. Conversely, this is the time for the bulls to show up, defend support, and send stocks higher. Until either support (Feb’s low) or resistance (2018’s high) are breached for all of the major indices, I have to expect this sloppy wide and loose action (a.k.a. Chop City) to continue. As always, I want to see where the market closes on Friday and will have a full report for you this weekend.
FLS Portfolio:
The service raised its stops in recent weeks across the board and as always will let the market guide us (in and out). Thankfully, 2017 was a record-setting year for the model portfolio and we have earned the luxury of exercising patience at this juncture and will let other people get chopped up in this sloppy action. Here is a snapshot of Wednesday’s close:
Positions:
The service owns:
ADBE +96.63%,CAT +42.32%, ISRG +39.80%,
RMD +26.89%, MELI +47.50%, TWTR +6.15%, FB -0.85
The service will exit:
ADBE @ 179.23, CAT @ 142.77, ISRG @ 379.77,
RMD @ 87.57, MELI @ 319.77, TWTR @ 31.53, FB @ 177.77
Working Orders:
| Order | Symbol | Buy Stop | Sell Stop | % Change |
| Open | BABA | 195.25 | 182.97 | -6.29% |
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.
