Market Update:
The “big” event this week (so far) was the bulls showed up and defended the 50 DMA line for the major indices. That’s the “good” news. The not so good news is that many important areas of the market (IWM, XLF, XLB, IYT, SLX, just to name a few) broke below their 50 DMA lines and are still “living” below them now. Meaning, the 50 DMA line was support and has now become resistance for many important areas of the market. Hence, the split tape has returned.
Watch The 50 DMA Line:
Going forward, either the major indices get dragged lower or the under-performing areas jump back above their respective 50 DMA lines and move higher. So far, the jury is still out and more time (and price) is needed as the market pauses after a very strong rally (since the election). Remember, tomorrow is the end of the month/quarter. A lot of people could be waiting until early April to readjust their portfolios.
Macro Watch:
I’d be remiss not to note that other markets (outside of stocks) have give back most, if not all of their post election moves, and that means on a macro level investors are beginning to doubt the so-called Trump trade. We’ll see if that is a temporary anomaly or something more serious. Some of those markets are: Currencies (US dollar, Mexican Peso), and Commodities (Gold, Silver, etc).
Bullish Side Of The Tape:
The bulls are still doing well and several important areas of the market continue acting very well. Amazon, a big leading stock, broke out yesterday on heavy volume which shows you that big institutions are still buying – even at these lofty levels. As always, we want to see where the market closes tomorrow and will have a full report for you this weekend.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting well. The service raised its stops before the last pullback began and we are well positioned as the market bounces. Here is a snap shot of the portfolio as of Wednesday’s close:
The service owns: ICE +3.02%, ADBE +16.64%, BABA +11.86%, HAS +0.31%
The service will exit: ICE @ 58.07, ADBE @ 117.22, BABA @ 100.77, HAS @ 97.17
Working Orders:
| Status | Order | Ticker | Buy Stop | Protective Sell Stop | Risk From Entry |
| Open | Buy | GDXJ | 38.58 | 37.71 | -2.26% |
| Open | Buy | DPZ | 187.38 | 178.39 | -4.80% |
| Open | Buy | NVDA | 109.97 | 106.36 | -3.28% |
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.
