Market Update:
Finally, time for a much needed pullback. The market is pulling back from very over bought conditions. The key now is to analyze the health of this pullback to see if it is shallow and constructive or if it just rolls right over like what happened after the Jan bear market rally failed. Beaten down areas of the market (transports, commodity stocks, emerging markets, materials, etc) that soared over the past few weeks are leading the way lower today and are a big part of the Russell 2000 (that’s why the $RUT has been lagging so badly over the past 18-24 moths). At this point, we still believe this is a bear market rally and ultimately lower prices will follow. We don’t think the market rolls right over and fails like it did in Jan, instead we believe the market will move sideways for a few weeks like it did in Oct-Dec before rolling over again. We are open to any scenario and at this point are very happy with our current exposure. On the other hand, if the market decides to rally – we will be ready to buy. On Thursday, we have the European Central Bank (ECB) getting ready to fire another shot from it’s easy money bazooka. Later this month, other central banks are scheduled to meet. As always, the easy money trade remains the biggest (bullish) wild card for the market.
FLS Portfolio
Thankfully, the service bought perfectly and is now sitting on a nice gain. To protect our position, the service raised and shall keep our protective stop at 102.37. As of this writing, 10:57am:
A. The service owns: QQQ +4.75%
B. The service will exit: QQQ @ 102.37
Working Orders:
There are no new working orders today
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For those of you that want more “actionable” ideas- we are in the process of launching a few new services and educational material. In the interim, here is a list of stocks that are trading near their respective (or crossing below) their 50 DMA lines on Tuesday as of 10:40am. As always, all the stocks are for informational and educational purposes only and are not buy or sell recommendations- just stocks for an active watchlist for those of you who like 50DMA plays. Also check out the AMZN, NFLX, and GOOGL and a few big banks that encountered stubborn resistance and are pulling back after failing near their 50 DMA lines over the past few days.
Stock/ YTD% Change
1. AR 10.18%
2. GPOR 9.73%
3. BXLT 1.82%
4. XLNX 0.97%
5. MCD -0.09%
6. FIS -0.87%
7. ORI -1.82%
8. PDCE -2.38%
9. VIAB -2.65%
10. MSCI -2.70%
11. SBUX -3.07%
12. DAL -4.23%
13. USB -4.45%
14. ANTM -4.48%
15. NKE -4.96%
16. GPN -6.15%
17. BAH -6.55%
18. ZAYO -6.96%
19. WFC -7.18%
20. SBAC -8.19%
21. PNC -8.22%
22. JNPR -8.36%
23. PKI -8.64%
24. DFS -8.66%
25. FTNT -8.82%
26. MTB -8.86%
27. EVHC -8.89%
28. INTC -9.40%
29. VLO -9.67%
30. NWL -9.73%
31. TSS -9.98%
32. STJ -10.02%
33. AME -10.13%
34. MET -10.33%
35. VMW -11.01%
36. PFG -11.31%
37. AN -11.41%
38. STT -11.84%
39. BYD -12.18%
40. IVZ -12.46%
41. DISH -12.82%
42. BKD -13.43%
43. HAR -13.71%
44. ETFC -14.24%
45. TOL -14.35%
46. PACW -14.83%
47. VOYA -15.03%
48. DRII -15.05%
49. NCLH -15.22%
50. STRZA -15.55%
51. SCHW -16.18%
52. WDC -16.62%
53. CAA -16.67%
54. ZLTQ -17.00%
55. EEP -19.33%
56. TGI -19.99%
57. EGN -21.76%
58. YELP -23.09%
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 Sarhan Capital is strictly prohibited.
