Market Update: Strength Begets Strength
The major indices rallied hard yesterday after a “dovish” central bank meeting in Jackson Hole and after the US and Mexico reached a deal to change NAFTA (details below). Interestingly, Canada was left out of the conversation but the market looked part of the equation.
I receive a lot of questions from people asking “why”? They want to know why can the market keep moving higher. The simple answer is that this is textbook bull market action. In a bull market, the market takes on a life of its own and rallies in the face of just about every headline- good or bad. The opposite is true in a bear market. That’s why, I’ve learned to focus a lot more on psychology (mine and the markets) than the headlines. In the short term, the market is getting a bit extended now and due to pullback. The next level of support to watch is the 50 DMA line. Eventually, this bull market will end but until it does, I don’t want to fight this very strong tape.
FLS Portfolio:
The FLS portfolio bought GOOGL and continues acting well. Here is a snapshot of the portfolio as of Monday’s close:
Positions:
- The service owns: ADBE +136.20%, ISRG +72.93%, QQQ +11.92%, SQ +56.19%, AAPL +15.12%, GOOGL +1.00%
- The service will exit: ONLY AVAILABLE TO MEMBERS- Join Here
