FLS Tuesday Update: Stocks Are Strong… 11/29/2016

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Market Update:
The market remains strong and extended in the near term. The good news is that the action remains strong as there remains virtually no sellers. One theory that is floating around trading desks is that sellers are holding off and waiting until Trump cuts taxes to sell. I know a lot of investors (big and small) and have yet to see someone decide to not sell a stock because of what might happen to their tax bill at some point in the future. Will Trump cut taxes day 1? year 1? year 2, 3 or 4? We don’t know and that’s why I don’t buy that argument. I take the other side and just say – for now, the market is strong because monetary policy (The Fed) remains very low (even if the Fed raises next month it will barely move the needle) and fiscal policy will be more favorable under Trump (also lower regulations- which should be pro growth). Right now, is a time for patience as the market pauses to digest the recent and very strong election rally. Tomorrow we have OPEC, then Friday is the always fun jobs report. After that traders will be waiting for The Fed. For now, the market looks good and we will likely grind higher for the foreseeable future.  
 
FLS Portfolio:
Thankfully, the FLS portfolio is acting well. 
Here’s a snapshot of the FLS portfolio as of Tuesday’s close,
 
A. The service owns: SMH +22.50%, MU +8.25%
B. The service will exit: SMH @ 65.96, MU @ 17.94
 
 
Working Orders:
 
Status Order Ticker Buy Stop Protective Sell Stop Risk From Entry
Open Buy HACK 28.23 26.97 -4.46%
Open Buy CME 115.41 111.82 -3.11%
Open BUY IBB 288.31 274.12 -4.92%
 
 

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.

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