Market Update:
Overall the action remains sloppy and the tape remains very split. The market is trying to bounce off support (Sep’s low for each of the major indices). Unlike past snap-back rallies off support, this rally feels a little weak. That doesn’t mean, the bullish pixie dust doesn’t show up as we approach month-end, just that in the past the market would snap back and instantly be near its highs after “testing support” and this time the snap-back rally is slower/weaker.
If we can’t rally, and sellers show up, the next level of important support to watch is Oct’s low. If that level is breached, we will likely head to the 200 DMA line. If not, the 50 DMA line remains resistance for the Dow & S&P 500. On the stronger side, the Nasdaq and Nasdaq 100 are “leading” again as they managed to get back above their respective 50 DMA lines…for now. We want to see how stocks react to earnings and will revisit later this week. For now, patience and a defensive stance are key.
FLS Portfolio:
The FLS portfolio is happy with its exposure in this very “split” and sloppy tape.
Here’s a snapshot of the FLS portfolio as of this writing (Tuesday @3:27pm EST),
A. The service owns: SMH +16.23%, BAX -0.62%,
AAPL +1.16%
B. The service will exit: SMH @ 62.96, BAX @ 46.57, AAPL @ 111.44
Working Orders:
There are no working orders today
Earnings Season: Good & Bad… So Far
As our long-standing clients know, we like to separate the winners and losers from earnings season. Here is a short list (so far):
UP:
NFLX
HAS
DPZ
UNH
GS
TACO
TTS
DOWN:
AA
ILMN (gapped down 25% after lowering earnings estimates). Reports Nov 1st
VAC
FRC
JBHT
IBM
BMI
JNJ
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.
