FLS Pre-Fed Update: Caution is Still King

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

The market is weak. The fact that it is barely bouncing even after last week’s shellacking shows us the sellers still have the upper hand. Big caveat- of course, is the Fed tomorrow. That could drastically change the playing field but barring some large positive rally this week, the market continues getting weaker (in the short term), not stronger. Last Wed and Thurs we saw stocks open higher and close near the lows. That led to Friday’s big sell off. Today we saw stocks rally for most of the day but drift lower ahead of the close. That’s a subtle, but important, sign that the sellers have the upper hand. Moreover, it is disconcerting to see several leading stocks give back earlier gains and trade near their lows for the day (NFLX, GOOGL, AMZN, FB, etc). We want to see how stocks react tomorrow and will have another update for you on Thursday (unless tomorrow’s action warrant’s an earlier update). So far, we want to express a cautious stance and as we have been saying for weeks, “caution is king right now.”

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

FLS is happy with its current exposure and is ready to buy if stocks rally from here. If not, the stops are in and the service will be out and very comfortable having enjoyed another solid year. As always, we’ll let the market guide us. As of this writing (3:45pm EST)

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

A. The service owns: AMZN +22.91%, MSFT +0.42%
B. The service will exit: AMZN @ 620.31, MSFT @ 52.47

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

[su_table]

[/su_table]