Housekeeping:
Adam is speaking at a hedge fund conference in NYC today, then he will be at the NYSE tomorrow, interviewed at the Nasdaq on Friday, then fly out over the weekend. Due to his schedule, this will be our only intra-week update this week and our weekend report will be a little shorter than usual and sent on/before Sunday night.
Market Update: Watch The Headlines
The market ripped higher since last Thursday’s intra-week update. The few big “data points” are: The French Election, Earnings, and President Trump’s tax plan. Our long-standing readers know we only care about “what” is happening, not “why” something is happening.
In the short term, clearly the market is getting extended to the upside but that can continue for the foreseeable future. Remember, in bull markets, you want to have conviction and step in and buy the dip(s). Last week, was a perfect example when we saw negative headlines popping up left and right without any serious downside action.
I received quite a few emails and phone calls asking about the timing of last Thursday’s pre-market note. If you are in this business as long as I am you get a feeling every now and then that the market is about to turn. The feeling is not always right, but when it works, it works marvelously. On a more practical level: Enough time had passed (market pulled back for 8-weeks), pessimism was starting to grow, the CANSLIM crowd and the headlines in the media turned bearish, there was just a lack of enthusiasm for owning stocks, all this and the market was “only” down a few small percentage points.
I’ve learned (the hard way), that contrary to popular belief the ideal time to buy stocks is when no one else wants to buy. At this point, the market is reacting very well to earnings season and continues to shrug off all the geopolitical turmoil out there. As far as I’m concerned, until we see a big sell-off the bulls are clearly in control. Keep in mind, it’s not the news that matters (the “what”), it’s how the market reacts to the news( the “why”). So far, the reaction is nothing short of stellar. We want to see where the market closes on Friday and, as always, will have a nice report for you this weekend.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well! The service added AXP on Monday and navigated this latest pullback with grace and without getting stopped out of our core holdings. The service is raising the stops for ADBE and BABA a little to protect our large profits. Here is a snap shot of the portfolio as of Tuesday’s close:The service owns:
The service owns: ICE +5.92%, ADBE +20.16%, BABA +17.96%, SPY 0.82%, AXP +0.19%
The service will exit: ICE @58.75, ADBE @ 124.37, BABA @ 106.41, SPY @ 231.47, AXP @ 78.64
Working Orders:
There are 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 50 Park Investments is strictly prohibited.
