Market Update: Stocks Are Strong
The stock market is very strong. The fact that it simply refuses to fall even as other markets are crumbling speaks volumes to how strong the bulls are right now. Eventually, that will change but for now the bulls remain in clear control. For the most part, the major indices are respecting the short term 10 day moving average line and that is a very strong sign. Crude oil plunged 5% today, gold and silver have been getting smacked (silver is down 13 straight days or something crazy like that), copper is plunging, and other commods/currencies are getting slammed— but stocks refuse to budge and the VIX (the so-called volatility index) broke below 10 this week for the first time in ten years. The last time that happened was in 2007 and we all know what happened in 2008. Just some food for thought as we move forward.
Separately, as many of you know, I speak with a lot of investors (individual and institutional) everyday and there is a lot of complacency in the market. The fact that almost no one thinks stocks can fall is a classic sign of an aging bull market. But, to be clear, until the music ends, we are in a very strong bull market for stocks. We have the jobs report tomorrow and will have a full report for you this weekend.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well! The service sold AXP for a very small loss of just over 2% earlier today. Here is a snap shot of the portfolio as of today’s close:
The service owns: ICE +5.75%, ADBE +21.17%, BABA +18.35%, SPY 0.90%, AAPL +1.06%, HA -2.06%
The service will exit: ICE @58.75, ADBE @ 124.37, BABA @ 106.41, SPY @ 231.47, AAPL @ 140.73, HA @ 52.74
Working Orders:
| Status | Order | Ticker | Buy Stop | Protective Sell Stop | Risk From Entry |
| Open | Buy | CELG | 126.55 | 121.61 | -3.90% |
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.
