Market Update: Earnings Galore
January was the best month for the major indices since March 2016. The Nasdaq composite led the way, vaulting a very impressive +7.36% in January. The S&P 500 and Dow Jones Industrial Average rallied +5.62% and +5.79%, respectively. Meanwhile, the small-cap Russell 2000 came in last place and eeked out a decent +2.57% gain for the month. Historically, every time the S&P 500 has rallied 5% in January, the market ends higher for the year. That doesn’t mean 2018 is an up year just that odds favor the rally continues until we see any significant selling. Stepping back, the market is still in pullback mode as a slew of earnings continue to be released. After today’s close we have AAPL, AMZN, and GOOGL just to name a few.
Reminder: The New World: 200-300 Point Swings In The Dow
It is important to note that on any given day the major indices can easily move 1%. Now, that the Dow is trading above 26k, a 1% move equals ~260 points. Furthermore, a “big” up or down day we could easily see the market 2% which would equal ~500 points. So, please look at the % change when the market moves, and don’t be scared or mislead by big headlines that say the Dow is up/down 100 or 200 points. That should be expected as we move forward. Finally, it is the end of the month and the market likes to rally into month end. Not always, but more often then not. Key areas of support to watch are the 10, 21, and 50 DMA lines for the major averages and leading stocks. Until the 50 DMA breaks, the bulls remain in control.
FLS Portfolio:
The FLS portfolio is off to a GREAT start to 2018 and once again outperforming the major indices. Several of our stocks reported (or will report) earnings this week and so far so good. Here is a snapshot of the portfolio as of Wednesday’s close:
Positions:
The service owns:
ADBE +79.82%,
CAT +51.88%, ISRG +36.92%, RMD +29.72%,
MNST +21.75%, MELI +40.99%, BABA +14.98%, FB +3.24%, NVDA +19.96%
The service will exit:
ADBE @ 165.47, CAT @ 133.71, ISRG @ 359.64,
RMD @ 87.07, MNST @ 62.14,
MELI @ 310.94, BABA @164.15, FB @168.97, NVDA @ 204.91
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.
