• Market Insight

FLS Update: Approaching End of Month… 10/25/2016

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Market Update:
The sideways/choppy action that has dominated the tape since Sep 9th continues as investors desperately look for clarity and a bullish catalyst. Leadership has narrowed considerably in recent weeks and the tape remains very split. We are approaching the last few trading days of the month- which tend to have a slight upward bias. 
 
Earnings, Earnings, and More Earnings:
Earnings are front and center and so far the reaction is lackluster…at best. Our list of “good” and “bad” reactions can be found below.
 
Tough Period For Active Management, It’ll Improve:
I was told earlier today that IBD’s LeaderBoard service is down -26.5% in 2016! Even if they are down half that, that’s not fun. Now, I’m not picking on them, because nearly all active managers are having a very tough year -arguably this is the worst period for active managers in recent history! I’m happy to announce that since Q1 2015 the FLS model portfolio is up ~17%. During that time, the benchmark S&P 500 is only up a little over 1%. Furthermore, the market had two violent “corrections” (Aug 2015 and Jan-Feb 2016) and both times FLS managed to emerge unharmed. The good news is that nothing lasts forever and when markets start trending well again- we are looking forward for our patience to be rewarded- in a very big way!
 
FLS Portfolio:
The FLS portfolio is happy with its exposure in this very “split” and sloppy tape. Here’s a snapshot of the FLS portfolio as of Tuesday’s close,

A. The service owns: SMH +16.93%, BAX +1.65%, AAPL +1.69%
B. The service will exit: SMH @ 62.96,  BAX @ 46.57, AAPL @ 111.44
 
 
Working Orders:

There are no working orders today
 
 
Earnings Season: Good & Bad… So Far
As our long-standing members know, we like to separate the winners and losers from earnings season. Here is a short list (so far):
 
 
 
Bold stocks are today’s movers
 
UP:
  1. NFLX
  2. HAS
  3. DPZ
  4. UNH
  5. GS
  6. TACO
  7. TTS
  8. BABY
  9. HAL
  10. SNA
  11. GGG
  12. LSTR
  13. AXP
  14. URI
  15. ICLR
  16. MAT
  17. DHR
  18. BK
  19. CTXS
  20. FTI
  21. ALK
  22. IMAX
  23. PFPT
  24. MAN
  25. PYPL
  26. MSFT
  27. ETFC
  28. TMUS
  29. LMT
  30. RE
  31. CPLA
  32. CR
  33. LFUS
  34. NCI
  35. PG
  36. VLO
  37. BHI
  38. HMST
  39. IPAR
  40. UTX
 
 
 
 
DOWN:
  1. AA 
  2. ILMN (gapped down 25% after lowering earnings estimates). Reports Nov 1st
  3. VAC
  4. FRC
  5. JBHT
  6. IBM
  7. BMI
  8. JNJ
  9. ISRG
  10. AZO
  11. MANH
  12. GPC
  13. CREE
  14. TUP
  15. INTC
  16. RAI
  17. UNF
  18. UFPI
  19. IIIN
  20. RS
  21. DXPE
  22. DST
  23. KALU
  24. FLXS
  25. TRV
  26. SCSS
  27. EBAY
  28. UNP
  29. BJRI
  30. SYNT
  31. ATHN
  32. CLW
  33. MCO
  34. SKX
  35. STS
  36. LZB
  37. SHW
  38. MAS
  39. WHR
  40. WAT
  41. WSO
  42. NLSN
  43. CYNO
  44. TMO
  45. UA
  46. MINI
 
 
 
 

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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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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