Market Update:
On Tuesday we wrote, “The market remains exceptionally strong and we continue to believe that we are entering a climax/blow off top similar to what we experienced in 1999-2000 or 1928-1929. The market continues to dismiss nearly everything that is happening in the world and greed has taken over. We continue to take it day by day and are open to any scenario that plays out. In the short term, the market is very extended to the upside and a nice light pullback would do wonders to restore the health of this market. Yellen is set to testify today and we have to expect a slightly hawkish tone from her.” So far, our Tuesday note was right on the money. Yellen, was a little hawkish and stocks continued to rally. A quick glance at a daily chart of the major indices shows that the market is very extended to the upside and way over due to pullback. The first level of support is the short term 10 day moving average, then the 21 dma then the real level to watch is the 50 dma. As long as stocks stay above the 50 dma, the bulls are clearly in control. As always, we want to see where the market closes tomorrow, and we will have a full report for you this weekend.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well. The service sold NVDA on Tuesday for a gain of just under 1%. We will look to add more risk after the next pullback. Here is a snap shot of the portfolio as of yesterday’s close:
The service owns: ICE +2.52%, ADBE +6.88%,
BABA +3.73%, HACK +3.63%, EBAY +34.01%, IWM +1.48%
The service will exit: ICE @56.57, ADBE @ 111.09,
BABA @ 97.9, HACK @28.38, EBAY @32.86, IWM @ 137.56
Working Orders:
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.
