Market Update:
The market remains in lousy shape as the chop-fest continues on Wall Street. Over the past three weeks, the major indices have paused and are forming a bearish flag or bearish wedge pattern (depending on the index). Barring more printing/easy money from the Fed/Central Banks, this is not healthy action and suggests lower prices will likely follow. We want to see where the market closes tomorrow and will have a full report for you this weekend.
A Closer Look At The Dow Transports:
The Dow Jones Transportation Index was up big this morning and here is a closer look at all 20 stocks in this index as of 11 am EST on Thursday. Still a lot of bad merchandise trying to bounce from deeply oversold levels.
AAL – Remains in poor shape
ALK – Remains in very poor shape
CAR – Remains in very poor shape
CHRW – Back above its 50 DMA – Next level of resistance 200 DMA
CSX – 50 DMA line next level of resistance to watch
DAL – Remains in poor shape. 200 DMA line is next level of resistance
EXPD -Rallying into resistance (50 DMA line)
FDX – Bouncing breaking above a downtrend line. 50 DMA next level of resistance
JBHT – Jumped above its declining 50 DMA line. In “V” shaped bounce.
JBLU – Down on a day like today – which is not good. 50DMA about to undercut 200 DMA. 200 DAM is resistance
KEX – Rallying into resistance (declining 50 DMA)
KSU – Broke above mid-level resistance and now crossing above declining 50 DMA line
LSTR- Broke above mid-level resistance and now crossing above declining 50 DMA line
LUV – Remains in very poor shape. 200 DMA line next area of resistance
MATX – Little cup forming (trying to form small handle). 200 DMA is resistance
NSC – Remains in very poor shape. Trying to bounce from deeply oversold levels
R – Rallying right into resistance (50 DMA line)
UAL- Remains in very poor shape. $49.41 then 50 DMA line next areas of resistance
UNP -Rallying into resistance (declining 50 DMA line)
UPS – Rallying into resistance (declining 50 DMA line)
FLS Portfolio:
So far this year, the service is easily beating the S&P 500 (and all the other indices for that matter). Thankfully, the service tightened its stop on GOOGL because the action went from good to bad within a day (another subtle but important sign that the sellers have the upper hand right now). The service sold GOOGL (-3.12%) and IWM (-2.91%) on Wednesday and is happy to be flat right now. Remember, for us, CASH is a position and we are happy to be there as the “chop-fest” continues on Wall Street.
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 Sarhan Capital is strictly prohibited.
