• Market Insight

FLS Pre-Market Update: Small Caps Breakout To New Record Highs… 05/17/2018

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Market Update: Small Caps Breakout
Earlier this week, I highlighted the bullish action that I was seeing in the small caps vs the other popular indices. Yesterday, the small-cap Russell 2000 broke out and hit a fresh record high! Additionally, I mentioned that I would like to see the market pullback but the market only pulled back for one day before the bulls showed up and sent stocks higher. All this (and more) is bullish for the broader indices. 
 
Near-term, I still would like to see a nice light volume/quiet pull back into the 50 DMA line but if that doesn’t happen, and the market just shoots higher, the service is already long a decent amount and will be adding when new opportunities emerge. Until then, the service is very well positioned and the market continues acting well. CSCO reported after yesterday’s close and WMT reported before today’s open. 
 
Overall, the action remains positive and retailers largely remain in focus over the next few days with a few other big tech stocks sprinkled in along the way. As always, I want to see where the market closes tomorrow and I will have a full report for you this weekend.  
 
FLS Portfolio:
The portfolio continues acting very well. 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. I moved the stops up in our “newer” positions to at/near breakeven this way we don’t lose money (adjusted stops are in bold below). Here is a snapshot of the FLS portfolio as of Wednesday’s close:

 

Positions:

A.    The service owns:  

ADBE +113.69%, ISRG +46.23%, SFLY +3.43%, 

QQQ +2.59%, NFLX +2.21%, SQ +12.95% 

B. The service will exit: 

ADBE @ 201.56, ISRG @ 379.77, SFLY @ 90.87,

QQQ @164.71, NFLX @ 321.09, SQ @ 50.10 

 



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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