[su_heading style=”modern-2-dark” size=”20″] Market Update [/su_heading]
We are operating with the notion that the market confirmed a large topping process on Aug 20 (the day the S&P 500 sliced and closed below 2,040 – the important support level that we highlighted for you since the Spring). The fact that global capital markets (stocks, currencies and commodities) are trading like penny stocks is another bearish sign and that typically occurs during bearish, not bullish phases.
At this point, we believe it is a matter of time (notwithstanding more easy money from Central Banks) that this correction will turn into a new bear market. As we have mentioned in prior reports, defense is king until the S&P 500 trades above 2040. That means active traders should be selling intro strength not buying weakness and for everyone else – Remember cash is a position.
We received quite a few “Thank You” emails for our cautious stance and we are very happy to be of service. We look forward to capturing a lot more “winners” for you in the very near future. The next level of support to watch is 1,867 (last Monday’s low). We do not like being involved when the market is trading all over the map. Thankfully, we have earned the luxury of being patient and are enjoying being on the sidelines right now.
[su_heading style=”modern-2-dark” size=”20″] Positions & Working Orders [/su_heading]
The FLS Portfolio is 100% in cash and there are no new working orders
