[su_heading style=”modern-2-dark” size=”20″] Market Update [/su_heading]
Today’s wild action warrants a special intra-week update so we are sending out a note today, instead of tomorrow. The U.S. stock market topped out last week and is now trading like a penny stock – which happens during bear markets, not bull markets. As we said in our weekend report, a new downtrend has begun.
Before today’s open, Dow & S&P futures were limit down and then the Dow experienced its largest single day point decline in history and fell 1089 points 5 min after the open. Then we shot up over 800 points and the Dow experienced its largest single day rally in history! Then sellers returned and we rolled over and closed in the middle of its range. This sloppy action occurs during downtrends (bear markets) not uptrends. Other markets (other stock markets, currencies and a slew of commodities) across the globe are also trading like penny stocks which bodes poorly for U.S. stocks. Right now we are very happy to be in cash and a lot more time is needed before we want to get involved. If this is “a” or “the” low – we want to see leadership emerge and stocks form new bases (which requires time). If we continue to fall, we also want to see new favorable entry points emerge (also requires time).
[su_heading style=”modern-2-dark” size=”20″] Portfolio Update [/su_heading]
Thankfully, the FLS portfolio is having a very good year considering how crummy the major indices are performing. The FLS portfolio is 100% in cash (no open positions) and we are VERY comfortable to be in cash right now and have received quite a few emails from members thanking us for how we navigated the market in recent months. Remember defense is king right now and we expect violent moves (in both directions) to continue.
[su_heading style=”modern-1-dark” size=”18″] Positions [/su_heading]
- The FLS Portfolio is 100% in Cash
[su_heading style=”modern-1-dark” size=”18″] Working Buy Orders [/su_heading]
There are no working orders today
