Market Update:
The Dow topped 20k yesterday and, as expected, the media went nuts. 20k is a number and from where I sit, the most important thing now is to see if the Dow can stay above 20k. In the near term, the action remains healthy but the market is getting very extended up here. The fact that it refuses to fall -on virtually any news – even the entire sr staff of the state dept resigning – is very bullish. At this point, the major indices are extended well above their moving averages and we would not be surprised to see them pullback a bit in the near future. Since we are in a very strong bull market – weakness should be bought, not sold. We want to see where the market closes tomorrow and will have a full report for you this weekend.
FLS Portfolio:
Thankfully, the FLS portfolio is acting very well. Since Tuesday’s update the service added HACK when it gapped up yesterday. Here is a snapshot of the portfolio as of this writing, today’s close:
- The service owns:ICE +1.06%, IYT +3.35%, ADBE +1.61%,
BABA +4.95%, NVDA +2.57%, HACK -0.04%B. The service will exit: ICE @55.7, IYT @ 165.01, ADBE @ 111.09,
BABA @ 97.9, NVDA @ 101.52, HACK 27.27
Working Orders:
There are no new working orders today
Her’s a Snap Shot of Q4 Earnings… So Far:
Q4 Earnings Summary:
70.3% have POSITIVE EPS surprise
11.5% have NEUTRAL EPS surprise
18.2% have NEGATIVE EPS surprise
77.7% have HIGHER EPS year over year
1.4% have NEUTRAL EPS year over year
20.9% have LOWER EPS year over year
Q4 Sector Performance (percentage of Positive Surprise):
Utilities: 100%
Information Tech: 96.2%
Materials: 87.5%
Consumer Discretionary: 70.5%
Financials: 70.0%
Industrials: 65.5%
Healthcare: 61.5%
Energy: 57.1%
Consumer Staples: 55.6%
Real Estate: 0%
Telecom Svcs: 0%
Earnings growth for the SPX the third quarter is 5.6% vs expectations of 4.5%
Ø Worth Noting: Earnings growth for the 115 non-financials that reported is 3.4%
Revenue growth for the SPX the third quarter is 2.4% vs expectations of 3.88%
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.
