Market Update: Mind The Gap
The market is finally pulling back from extremely overbought conditions. The Dow Industrial’s closed at 23,329 which is almost 1,000 points above its 50 day moving average line (22,373). That’s a big “gap” between the current price and a perfectly normal area of support. Be mindful of over the next few weeks it would be perfectly normal (and healthy) to see the market pullback and digest the recent and very strong move. Remember, there are two ways a market can digest a move: either move sideways for a few weeks or pullback. Clearly, the former is the stronger of the two scenarios so it will be very interesting to see how this unfolds. Stepping back, the market remains strong and we are still in the heart of earnings season. The WSJ has a great article today titled: Central Bank Tinkering which gives you a play-by-play look at all the mania from Global Central Banks over the past decade. On that note, at 7:45am EST, The European Central Bank is expected to announce how it intends to end its large-scale asset purchases. Then, after the close we have another round of big earnings from GOOG, MSFT, and a slew of other stocks.
FLS Portfolio:
The FLS portfolio continues acting well. The protective stops were moved up recently and we are waiting for new healthy risk/reward trades to emerge before adding more risk. Here is a snapshot of the portfolio as of Wed’s close:
Positions:
The service owns: ADBE +54.68%, BABA +73.87%, CAT +27.67%, ISRG +18.12%, NFLX +12.30%, NVDA +15.70%, RMD +0.90%, MNST +0.82%
The service will exit: ADBE @ 147.94, BABA @ 166.67, CAT @ 120.07, ISRG @337.27, NFLX @179.27, NVDA @172.67, RMD @ 77.70, MNST @54.13
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 50 Park Investments is strictly prohibited.
