Market Update:
After 5 straight up weeks the market is pulling in to consolidate that very strong rally. Since the post brexit low in late June, the benchmark S&P 500 soared over 9% in 5 weeks and is now pulling back. 9% in 5 weeks is not an insignificant sum and markets do not go straight up. At this point, the two levels of support to watch in the S&P 500 are prior resistance (old chart highs) 2,134 and then the 50 DMA line 2,113. The bulls want to see a nice quiet orderly pullback and then a strong bounce off of support. The bears want to see support break and a violent pullback ensue. We do want to note that the dow is down for 7 straight days and maybe oversold in the near term. If it is a healthy pullback, we will look to buy on the bounce after the next dip. Remember, we have the always fun jobs report on Friday.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well and as of this writing (Tues 3:35pm EST):
A. The service owns: QQQ +3.73%, SMH +7.09%, XLF -1.68%, GDX +1.49%
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37, GDX @28.75
Working Orders:
Status Order Ticker Buy Stop Protective Sell Stop Risk From Entry
Open Buy BLK 369.48 352.79 -4.52%
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.
