• Market Insight

FLS: The Bounce Continues… For Now 03/01/2016

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​​​​​​​​​​​​Market Update:​
The short term conditions continue to improve.  The bulls are getting stronger as the market continues to bounce hard from the Feb 11 low. Remember, bear market rallies are fast and furious and tend to last 4-12 weeks. This is the fourth week of this rally. So we may have some more room to run. Bear market rallies occur for two reasons: 
1. Massive short covering and 2. Buy the dip crowd shows up.   
 
The market is being led higher but “junk” rallying hard off the bottom. When you have a chance take a look at: Emerging markets (EEM), Materials (XLB), Steel Stocks, Energy Stocks (XLE, OIH), just to name a few. Right now we are glad to be long and feel there is a little more room for the market to run. We do know that once this little move runs out of gas, look out below. Just look at the strong bounce that happened in late Sep-Middle of Nov. That was a huge rally and the market failed shortly thereafter. On the other hand, if this is indeed THE LOW we will have a lot of GREAT opportunities in the weeks, months and years ahead. There is still a ton of damage that needs to be repaired. 
 
FLS Portfolio
Thankfully, the service bought perfectly and is now sitting on a nice gain. To protect our position, the service will raise its protective stop to 102.37. 
 
A. The service owns: QQQ +5.56%
B. The service will exit: QQQ @ 102.37
 
Working Orders:
There are no new 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.

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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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