Market Update:
Stocks edged higher today/this week and hit another record high as earnings continue to be released in droves. Microsoft (MSFT), Intuitive Surgical (ISRG) and Morgan Stanley (MS) were a few stocks that rallied today on earnings. Remember, we focus on how stocks react to the news, not the news itself. So far, the reaction is healthy as the major indices and the majority of stocks that have reported earnings continue to react well. Gold stocks and a few other commods slid a bit today as the USD edged higher. So far, the action in the major indices is perfectly normal after a big base breakout (in the Dow and S&P 500). In the short term, the market feels a little tired up here and we have to expect a little pullback into support (prior chart highs) and/or near term moving averages (10, 21 or 50 day moving average lines). Overall, the action remains strong and weakness should be bought, not sold. We want to see where the market closes on Friday and as always will have a full report for you this weekend. Remember, if this is the beginning of nice new uptrend we will have a lot of great opportunities ahead of us.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well and thankfully we raised our stops to breakeven (wherever possible) over the weekend. We are comfortable with our exposure at this juncture. As of Wed’s close,
A. The service owns: QQQ +2.34%, SMH +5.95%, XLF -0.63%
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37
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.
