• Market Insight

FLS Pre-Market Update: Rally Mode Continues- Small Caps In The Lead… 05/10/2018

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Market Update: Resistance Is Now Support
In Tuesday’s pre-market update I wrote, “The market feels like it wants to breakout and go topside from here. The Dow & S&P 500 bumped into their respective 50 dma lines yesterday which has served as near-term resistance in recent weeks.” That’s exactly what happened, as both the Dow and S&P 500 are now above their respective 50 DMA lines. The 50 DMA is now support for all the major indices. 
 
Separately, the Nasdaq continues marching higher and the next level to watch there is 2018’s high and then it will breakout to new highs again. Ditto for the small-cap Russell 2000. Actually, the Russell 2000 is acting stronger on a relative basis and is leading the pack higher (usually a bullish sign for the broader indices). Until any severe selling shows up, the bulls deserve the benefit of the doubt. I want to see where the market closes tomorrow and as always, I’ll have a full report for you this weekend. 
 
Earnings Season:
Remember, we are still in earnings season and here are the latest round of stocks that are reporting before the open today: Earnings reports out this morning include AMC Networks (AMCX), Dillard’s (DDS), Duke Energy (DUK), Meredith (MDP), and Revlon (REV). Dropbox (DBX), News Corp. (NWSA), Symantec (SYMC), Yelp (YELP) and Nvidia (NVDA) will be out with quarterly numbers after the bell. (Source: CNBC)
 
FLS Portfolio:
Remember, I like to buy the bounce after the dip and that is exactly what have done in recent weeks. Thankfully, we handled this pullback with grace, we locked in profits in several of our stocks earlier in the year, managed to hold on to ADBE and ISRG during the entire pullback and then began adding risk again in recent weeks as the market has rallied. 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 Wednesday’s close:

 

Positions:

A. The service owns: 
ADBE +115.81%, ISRG +46.62%, SFLY +1.88%, QQQ +1.92%, NFLX +2.87%, SQ +8.30% 

B. The service will exit: 
ADBE @ 201.56, ISRG @ 379.77, SFLY @ 88.64, QQQ @161.36, NFLX @305.63, SQ @ 47.77





Working Orders:
There are no 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.

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Picture of Adam Sarhan

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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