Market Insight

FLS Update: A Little End of Month Window Dressing? Nasdaq’s worst January…EVER 01/28/2016

Market Update:

So far Last Wednesday’s lows are holding, and for us, that’s all that matters. Tomorrow is the last trading day of the month and we have seen in near classic form, stocks rally in the latter half of the month. That event doesn’t officially occur because it is illegal and also called window dressing. We saw it happen most recently in December where stocks rallied in the latter half of the month only to get clobbered in January. Barring a large rally tomorrow the Nasdaq is on track for its worst January ever. Stocks sold off hard yesterday because the market was looking for a more dovish Fed (one and done). Meaning, they wanted to see a clearer stance from the Fed that they would not raise rates in March. That didn’t happen and stocks sold off hard after the meeting. The market is bouncing a little today which is normal but nothing exciting because the Transports are down on the day (and small caps are barely up)! Stepping back what is happening now is the market is just pausing to digest the recent and severe sell off which gives moving averages a chance to play “catch-up.” We want to see where the market closes tomorrow and will have a full report for you this weekend.

FLS Portfolio:

If the market rallies from here the service will buy the IWM. Otherwise, we are flat and comfortable. A slew of earnings are still ahead of us and we have GDP tomorrow.

Positions:

There are no positions right now

Working Orders:

Status	Order	Ticker	Buy Stop	Protective Sell Stop	Risk From Entry
Open	Buy	IWM	101.71	98.75	-2.91%

Earnings Reactions So Far…

Every earnings season we like to separate winners and losers because that is a great “tell” for how a stock will act in the new quarter. Stocks that exhibit big “gaps” up after reporting earnings tend to rally and the opposite is true for big gap downs. For your review, here is our list …. so far

Good

JNJ

MMM

RMBS

SYK

MKTX

MSTR

INGR

CRUS

PYPL

Bad

AXP

NFLX

TUP

LCI

AAPL

TSS

ADS

OSIS

NOW

LANC

HAR

URI

WRLD

ISRG

TMO

ILMN

EBAY

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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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