Market Update: Consolidation Continues
The market continues acting well as investors digest a slew of earnings data and continue to wait to see what will happen with respect to the tax bill. I would be remiss not to note that the market feels a little top heavy up here and is way over due for a nice pullback. But until it does pullback, the bulls remain in clear control.
To Dive A Little Deeper…
It’s clear that the market believes a tax cut will happen, it is just a matter of how what the final cut will look like. Will corporate tax fall to 20% or 25%, who knows. But frankly, it doesn’t matter because that is enough of a drop to stimulate the economy. Couple that with extremely low rates from the Fed and you have a bullish fundamental backdrop for the economy and the market. Looking at the tape, the market continues acting well as investors pause to digest the recent and very strong rally. Looking forward, a slew of big retail stocks are reporting earnings today and it will be interesting to see if any of them can rally from here. Remember, most retail stocks are in a brutal bear market and have been falling sharply over the past few years. Eventually, the tide will turn, but until it does this is not a leading group. As always, I want to see where the market closes tomorrow and will have a full report for you this weekend.
FLS Portfolio:
The FLS portfolio continues acting well. The service bought FOLD on Monday and sold it yesterday which is not fun but is part of the business. In fact, most stocks recently have not been working out. The decision NOT to add more risk in recent weeks has been very good for that exact reason. Remember, ladies and gents, patience is a virtue in our business. Currently, we are happy with our exposure and sitting on lofty gains. 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 +65.69%, BABA +89.89%, CAT +28.09%, ISRG +24.44%, NFLX +13.85%, NVDA +24.96%, RMD +5.78%, MNST +3.50%
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:
There are no new orders today. We will look to add risk in the near future.
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.
