Housekeeping:
Due to the shortened holiday week, this will be our only mid-week update.
Market Update:
Wednesday is turning into a big defensive day for the market. So far, the market is being defended nicely today as the bulls showed up and protected the 50 day moving average line for the major indices. This is an important area of support that is usually protected when the bulls are in control.
The Fed minutes are slated to be released at 2pm EST (30 min from now) and then we have the always fun jobs report on Friday. We do not expect any fireworks from the Fed minutes because they were dovish at their last meeting and that was before Brexit.
We do want to note that the major indices are forming a bullish little head and shoulders continuation pattern and a breakout (preferably on volume) would be healthy and help send the major indices into new high ground. Of course, a lot will need to happen for that to occur but we are open to any possible outcome. The jobs report is on Friday and then we enter earnings season. So far earnings are projected to fall over 5% vs Q2 2015. If that happens, that would be the 5th consecutive negative quarter for earnings. Meanwhile, the major indices are near new record highs. Don’t you just love #easy money!
We want to wait for the fat pitch and for a clean trend to emerge until then, we are still in this awkward “guess the gap” period for stocks. We could wake up tomorrow and gap up or down +- 100 or 200 points, while still being range-bound. We want to see where the market closes on Friday and will have a full report for you this weekend.
FLS Portfolio:
There are no open positions and no working orders.
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.
