Market Update: Support Must Hold
For the last week and change I have expressed the importance of a near-term pullback and said defense is key. I didn’t know the pullback would be so fast and so severe but such is life. The Nasdaq and S&P 500 pulled into their respective 50 DMA lines and the Dow closed near its longer-term 200 DMA line. Put simply, the major indices are sitting on important near-term support and support must hold here. For those of you short term players a case could be made to step in and buy with a stop below yesterday’s low. There’s nothing wrong with that approach – as long as you are comfortable possibly getting stopped out if the market continues to fall. Near-term yesterday “feels” like a near term low but I’m open to any scenario that may unfold. The week is still early but remember we are headed for end of month and end of quarter -which usually has a slight upward bias.
FLS Portfolio:
The FLS portfolio sold ANET yesterday for breakeven. To protect our positions, all stops were recently raised and that was a good decision. Here is a snapshot as of Monday’s close:
Positions:
- The service owns:
ADBE +115.75%, ISRG +50.18%, SFLY +1.86%,
QQQ +4.04%, NFLX +19.74%, SQ +23.53%
- The service will exit:
ADBE @ 207.12, ISRG @ 393.47, SFLY @ 90.87,
QQQ @164.71, NFLX @ 344.17, SQ @ 50.10
Working Order
There are no new working orders
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.
