Market Update:
Today’s big intra-day rally is impressive. Possibly sets the stage for a positive reversal for the week. Earnings season officially kicked off today and we want to see how the market and stocks react over the next few weeks. We do have to note the bulls are getting much stronger and remain in control since the Feb 11th low.
Big Bullish Picture:
1. There has been virtually no selling since the Feb 11th low.
2. EASY MONEY STILL IN PLAY.
3. Major indices are sitting to consolidate a very strong rally from the Feb 11th low. Until we get any sign of real selling. Market action is bullish. Of course, this could be a big broad top but easy money continues to distort the playing field and -for right now- bulls remain in control.
Bullish Story Continues After Short/Modest Pullback:
—--Beaten down areas continue to lead the market higher!
1. Gold and Silver bottomed in December (before everything else)- had a huge run then pulled back and just bounced again and led the way higher. Gold and silver stocks broke out last week and Silver (SLV) broke out today.
2. Steel stocks bottomed on Jan 20th and blasted off again over the last few days.. Another bullish confirmation
3. Oil prices bottomed on Feb 11th and had a huge run, pulled back and are now bouncing in a big way! Another bullish confirmation –
4. Emerging markets back in play – Russia breaks out (RSX), Brazil Breaks out (EWZ), etc.
5. Biotechs also back in play as they bounced off their 10 DMA line today.
Of course, if any major selling shows up- the bears regain control of this wacky environment. But until then, we have to respect the tape.
FLS Portfolio
We are comfortable with our exposure right now and will look to buy more if the bullish action continues. As of this writing, 3:18 pm EST,
A. The service owns: QQQ +10.10%
B. The service will exit: QQQ @ 106.37
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.
