• Market Insight

FLS Pre-Market: The Bulls Defend Support – Again… 04/05/2018

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Market Update: Another Near-Term Low

Yesterday appears to be another near-term low. The market had every chance (and excuse) in the world to definitively break down below support and instead of doing that, it erased a 500 point loss and ended up over 200 points! Before yesterday’s open, stock futures were down over 500 points but the fact the bulls showed up and defended support and the market closed higher suggests yesterday was another important near-term low. From where I sit, the big level of support to watch is Feb’s low. Until that level is breached, I have to expect this sloppy sideways action to continue. Once we get back above the 50 DMA line (still some time), then higher prices will likely follow. On the other hand, if support is broken, then look out below. As long as the bulls continue to defend support, odds favor the market bounces from here as we enter earnings season over the next few weeks. As always, I want to see where the market closes tomorrow and will have a full report for you this weekend. 
 
 

FLS Portfolio:

The service sold RMD yesterday for a nice +20.36% gain from entry. The good news is that, during this correction, there are a lot of nice high quality setups showing up on my radar. If this correction does not turn into a bear market, then we will have a lot of high quality stocks to buy. If it does, we will be out and look to probe the short side. At this point, patience is king. Here is a snapshot of the FLS portfolio as of Wednesday’s close:
 

Positions:

A. The service owns: 
ADBE +102.58%, ISRG +27.48%, 
MELI +29.48% 

B. The service will exit: 
ADBE @ 201.56, ISRG @ 379.77, 
MELI @ 319.77


Working Orders:

There are no new working orders today.

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.

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Picture of Adam Sarhan

Adam Sarhan

Host Of The #SmartMoneyCircle Podcast, Founder and CEO of 50 Park Investments. Adam provides weekly market updates to ChartYourTrade.com readers. He is a FORBES Contributor and is a frequent guest on all the major financial media outlets.

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