FLS Playbook Update: Time For Defense, Not Offense 08.20.15

[su_heading style=”modern-2-dark” size=”20″] Market Update [/su_heading]

A lot has changed since Tuesday’s update. To be clear, this is the time for defense, not offense. The bears are clearly in control and are getting stronger by the day.The market is now negative for the week, the major indices broke below last Wed’s low (was an important support day), the Dow Industrials, Russell 2000, and Nasdaq composite all broke below July’s low which was important support. The S&P 500 is slightly above important support near 2039. Additionally, a slew of important areas of the market rolled over (or are rolling over – financials, biotechs, big tech, which are leaving fewer and fewer names that are still in good technical shape). The fact that major global currencies and commodities are trading like penny stocks and continue to plunge bodes poorly for the major indices. We would be remiss not to note that if support is not immediately defended, the market has the potential to form A MAJOR TOP and a MUCH LARGER DECLINE could easily follow. The only saving grace continues to be easy money from the Fed/other central banks. Remember the Fed is “data-dependent” so if the data deteriorates we could easily see QE4 (printing more money). As always, we want to see where the market closes tomorrowand will have a full report for you this weekend. 

[su_heading style=”modern-2-dark” size=”20″] Portfolio Update [/su_heading]

Thankfully, the FLS portfolio is  performing very well considering how the major indices have been acting. Here is a snapshot as of this writing, 2:56pm EST:

[su_heading style=”modern-1-dark” size=”18″] Positions [/su_heading]

1. The service owns:   AMZN +17.95%, XLF -1.01%, REGN +5.86%, UA +11.46%

2. The service will exit:  AMZN @482, XLF @24.03, REGN @ 521, UA @ 92.77

[su_heading style=”modern-1-dark” size=”18″] Working Buy Orders [/su_heading]

If the market rallies from here we will work the following orders.. If it continues to fall, we will look to begin probing the short side in the near future.

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