Market Update:
The title of last Thursday’s update was: “Getting Extended.” At the time, I had no idea that Trump would announce his immigration policy the next day after the close (timing was not a mistake). The media is blaming the subsequent backlash as the culprit behind this pullback. The market was very extended and it is simply pulling back right now to digest the recent and very strong post-election gain. I would be remiss not to note that this is a very busy week on multiple fronts: Earnings, Central Banks, and Economic Data. Damage is beginning to show up beneath the surface but nothing out of control. The bulls need to show up and defend support (50 DMA line for the major indices), otherwise we head much lower. Trump needs to execute his policies gracefully otherwise he will lose a lot of political capital, real fast. It took George W. Bush 3 years to get below 50% approval rating. Trump did it in one week! There is so much tension beneath the surface that it is of the utmost importance for him to take his time and play his cards right. As my good friend GaryK says, Slow your roll…
FLS Portfolio:
Thankfully, the FLS portfolio is acting well. The service sold IYT for a very small 3.44% loss today. Here is a snapshot of the portfolio as of this writing, 2:05pm EST:
- The service owns:ICE +0.97%, ADBE +1.83%,
BABA +4.02%, NVDA +2.07%, HACK -0.42%
- The service will exit: ICE @55.7, ADBE @ 111.09,
BABA @ 97.9, NVDA @ 101.52, HACK 27.27
Working Orders:
We want to let this pullback run its course then look to buy the bounce after the dip. Right now, there are no new working orders.
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.
