Market Update: A Low
So far, last Friday’s low appears to be “an important low” as stocks have rallied hard since. On Friday, the bulls showed up and defended the 50 DMA line for the QQQ (strongest index of 2018) and that set the stage for the recent rally. It is important for this rally to continue by Friday because last week, the market opened higher and ended sharply lower. If that happens again, that would not be a healthy sign for stocks.
Important Levels To Watch:
Stepping back, the market is range-bound until either resistance (2018’s high) or support (Feb’s low) is breached. Overnight, North Korea said it is willing to talk to the US about denuclearization which is a big “positive.” Separately, Central Banks are still “dovish” and that is bullish for stocks. Take a look at this headline published this morning on Bloomberg:
Doves not dead yet
Bank of Japan Governor Haruhiko Kuroda rowed back on remarks made last Friday that seemed to suggest the bank was in line to exit its stimulus program next year. He clarified that he meant the monetary authority would start discussing paring stimulus in 2019 rather than immediately withdrawing accommodation. The Bank of Japan’s next policy decision is due this Friday. In Europe, the doves may remain in control as the European Central Bank meets Thursday, with euro-area growth hitting a speed bump, uncertainty in Italy, and trade frictions all pointing to no change in the central bank’s language on the future of its asset purchase program.
FLS Portfolio:
The service bought TWTR yesterday and right now we are comfortable with our current exposure. Here is a snapshot of Monday’s close:
Positions:
The service owns:
ADBE +90.08%,CAT +41.00%, ISRG +34.56%,
RMD +22.83%, MELI +42.37%, TWTR +0.29%
The service will exit:
ADBE @ 179.23, CAT @ 142.77, ISRG @ 379.77,
RMD @ 87.57, MELI @ 319.77, TWTR @31.53
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.
