Market Insight

FLS Pre-Market Update: Time For A Breather… 01/18/2018

Note: Due to the shortened holiday week, this will be our only intra-week update.

Market Update: Time For A Breather

It doesn’t take a genius to figure out the market is super extended up here. In fact, some technical readings show that this is the most overbought market we have seen in decades, if not in history. The fact that the market has gone straight up leads me to believe that we are in the late stages of this bull market. Normally, based on how this market has been trading, I wouldn’t be surprised to see a climax run develop sometime in the near future, before it tops out. During a climax run, the market could easily shoot up another 40 or 50% in a short time before topping out. We are not there yet, I just want to share what I’m seeing with you because no one out there is cautious right now. Remember, bull markets end when everyone/everything (all the news) is super bullish. It just feels like everyone is bullish right now and we all know what happens when a trade gets too crowded (there’s no one left to buy).

For now, the first level of support is the 50 DMA line for the major averages. The market looked like it wanted to fall on Tuesday but the bulls showed up and sent it back up…Based on how the market is trading, I think we are due for a nice pullback in the near future. As always, I want to see where the market closes tomorrow and will have a full report for you this weekend.

FLS Portfolio:

The FLS portfolio continues performing very well. Here is a snapshot of the portfolio as of Wednesday’s close:

Positions:

A. The service owns:
ADBE +76.87%,
CAT +57.21%, ISRG +36.74%, RMD +14.20%,
MNST +19.68%, MELI +24.00%, BABA +3.46%, FB -1.89%, NVDA +9.67%

B. The service will exit:
ADBE @ 165.47,
CAT @ 133.71, ISRG @ 359.64,
RMD @ 81.37, MNST @ 60.04,
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.

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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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