Market Update: Support Not Holding
The title of Tuesday’s update was: “Support Must Hold.” As of Wednesday’s close, it didn’t. The market opened higher yesterday but closed lower which is not a healthy sign. But what concerns me about yesterday’s action is not only did it open higher and close lower—the major indices closed below important support. That is not a healthy sign. Especially, after the White House softened its stance on the whole China can’t invest in US tech companies dialogue (that was the catalyst which sent stocks lower earlier in the week). Typically, it’s not a good sign to see almost all the major indices fall below support on “news” that should be positive. For the last few reports I’ve expressed caution and a defensive stance. Thankfully, that has been the right call. For now, defense is king until we see a bullish/positive reversal. If we don’t see one soon, I wouldn’t be surprised to see the market retest February’s low. As always, I want to see where the market closes tomorrow and will have a full report for you this weekend.
FLS Portfolio:
The FLS portfolio continues acting well and sold SFLY for break-even yesterday. To protect our positions, all stops were recently raised and that was a good decision. Here is a snapshot as of Wednesday’s close:
Positions:
- The service owns:
ADBE +113.95%, ISRG +51.10%,
QQQ +3.05%, NFLX +21.58%, SQ +19.94%
- The service will exit:
ADBE @ 207.12, ISRG @ 393.47,
QQQ @164.71, NFLX @ 344.17, SQ @ 53.56
Working Order
There are no new working orders
Disclaimer:
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