Market Insight

FLS Pre-Market Update: Earnings, The Fed, and Jobs This Week… 05/01/2018

Market Update: Earnings, Fed, & Jobs

Yesterday’s action was not impressive. The major indices all turned lower after hitting their 50 DMA line (which has been highlighted for you in recent weeks as near term resistance). Under neath the surface I’m seeing some disconcerting action as the all-important semiconductor group (ticker: $SMH) closed below its 200 DMA line for the first time since this massive rally began in Feb 2016! That’s something I’m watching very closely. If other areas start breaking below their 200 DMA lines then it is just a matter of time until the market breaks. Conversely, if the market can get (and stay) above its 50 DMA line, then we can try to hit 2018’s high. Until either even occurs, this sloppy sideways action will likely continue.

Busy Week on Wall Street:

Futures are quiet ahead of the open today as the world waits for several big “data points” that are due out later this week. First, Apple is slated to report earnings after the bell. 50 years ago there was an old saying what is good for GM is good for the country. My version is: What is good for Apple is good for the market. Let’s see how Apple reacts to the numbers tomorrow. The second big data point will be the Fed which is largely expected to raise rates. Then, before Friday’s open, we have the always fun and exciting jobs report. So far the market is hanging in there rather well as earnings continue (on average) to be strong and beat estimates).

FLS Portfolio:

We are happy with our current exposure and will be adding more risk, only if the market rallies from here. Our (concentrated) portfolio is acting well. For those of you who want to hedge: Ticker: HDGE is my favorite way to hedge your portfolio. Here is a snapshot of the FLS portfolio as of Monday’s close:

Positions:

A. The service owns:
ADBE +99.48%, ISRG +39.81%

B. The service will exit:
ADBE @ 201.56, ISRG @ 379.77

Working Orders:

Order	Symbol	Buy Stop	Sell Stop	% Change
Open	QQQ	164.71	161.36	-2.03%
Open	SFLY	84.82	79.79	-5.93%

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.

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Adam Sarhan

Host Of The #SmartMoneyCircle Podcast, Founder and CEO of 50 Park Investments. Adam provides weekly market updates to ChartYourTrade.com readers. He is a FORBES Contributor and is a frequent guest on all the major financial media outlets.

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