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
HA
SYK
MKTX
FB
UA
MSTR
INGR
CRUS
PYPL
Bad
AXP
NFLX
BA
TUP
LCI
AAPL
TSS
ADS
OSIS
NOW
LANC
HAR
URI
WRLD
ISRG
TMO
ILMN
EBAY