Housekeeping:
Unless we see a huge market move- this will be our only update this week..
Market Update:
The Fed meets today and we expect them to be dovish (reiterate their easy money stance). That should be bullish for the major indices. Stepping back it is more of the same, the beaten down areas (mainly commodities) are leading in 2016 while areas that worked last year are lagging (hard). So far, AAPL, GOOG, NFLX, TWTR, V, SBUX, all fell hard after reporting lousy numbers. Meanwhile, the bank stocks and a slew of commodities (Steel, Oil, Gold/Silver, etc) are up and up nicely after reporting lackluster numbers.
What To Watch:
Earlier today, crude oil broke out and hit a new high for the year as the US dollar continues to fall. That could change after the Fed meeting but for now big money continues to defend the major indices and buy up all the beaten down areas that have been out of favor over the past 18-36 months. After the the bell, FB reports and then tomorrow we have the first look at Q1 2016’s GDP, Japan’s Central Bank (which is directly buying stocks and owns 10% of the Nikkei and 55% of Japan’s ETFs) will likely announce more or reaffirm its easy money stance, and AMZN reports after the bell. So far, the Nasdaq is lagging while the Russell (commodity heavy) is trying to lead. Outside of a few isolated areas of the market (Nasdaq 100 type stocks), there remains very little to virtually no selling and that is a net positive (for now). We want to see how the market digests the onslaught of economic and earnings day over the next 72 hours and where it closes on Friday. As always, we will have a full report for you this weekend.
FLS Portfolio
As of Tuesday’s close,
A. The service owns: QQQ +8.92%, XLV +1.29%
B. The service will exit: QQQ @ 106.37, XLV @ 69.61
B. The service will exit: QQQ @ 106.37, XLV @ 69.61
Working Orders:
| Status | Order | Ticker | Buy Stop | Protective Sell Stop | Risk From Entry |
| Open | Buy | HACK | 24.33 | 22.67 | -6.82% |
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.
