Market Update: Trying To Bounce
The market is trying to bounce after a tough few weeks. The Russell 2000 and Dow Transports continue to underperform their peers as they are both trading below their longer-term 200 DMA lines. Meanwhile, the S&P 500 and the Nasdaq are slightly better, but still trading beneath their respective 50 DMA lines. Finally, the Dow Jones Industrial Average is the strongest on a relative basis as it found support and is still trading above its 50 DMA line.
At this point, this appears to be another short-term pullback but we are way overdue for a steeper decline (keep that in the back of your mind). The bulls want to see the S&P 500 and Nasdaq jump back above their respective 50 DMA lines and the Russell and Transports jump above their 200 DMA lines. Until that happens, we are still in pull-back mode.
On a bullish note, the pullback (so far) remains very shallow (small % decline) and there are a lot of stocks that are setting up nicely for another leg higher. The week is still early but unless we see more heavy selling, we have to expect a relatively quiet week. Additionally, keep in mind, we are heading in to the end of August (typically quiet/low volume action) so we don’t expect massive fireworks on Wall Street (unless we see more ominous social unrest or other disconcerting headlines). A few up days will do wonders to restore the health of this rally.
FLS Portfolio:
The FLS portfolio continues acting well. The service sold TSLA yesterday for a very small 4.08% decline. Here is a snapshot of the portfolio as of Monday’s close:
Portfolio Update:
The service owns: ADBE +34.36%, BABA +72.88%,CAT +5.99%, AAPL –1.32%, ISRG +3.90%
The service will exit: ADBE @ 138.17, BABA @ 147.47, CAT @ 107.18, AAPL @ 151.77, ISRG @945.85
Working Orders:
| Order | Symbol | Buy Stop | Sell Stop | % Change |
| Buy | NFLX | 172.55 | 165.62 | -4.02% |
| Buy | AMZN | 996.38 | 954.56 | -4.20% |
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.
