Market Update:
Over the weekend, Italy voted “no” and the market brushed off the news in a matter of minutes. Italy was different than Brexit and the U.S. election because most people thought the no party would win. (In case you are not familiar with the details – this article explains what happened –read here). Stepping back, the market is very extended up here and is simply moving sideways to “pause” the strong rally we saw over the past month. The ECB meets on Thursday and then next week we have the Fed meeting. We wouldn’t be surprised to see the market pull back a little and then rally into year end. At this point, we know markets are extended and we are happy with our exposure.
FLS Portfolio:
Thankfully, the FLS portfolio is acting well. RS was added on Monday when it gapped above our buy stop. As a reminder for our new-er members, any stop FLS sets automatically becomes a market order if the stock gaps above or below our stop. That said, to protect our position, we are raising our RS sell stop to 82.79. Here’s a snapshot of the FLS portfolio as of Tusday 11:15 am EST
- The service owns:SMH +19.05%, MU +4.46%, CME +1.48%, RS +1.06%
B. The service will exit: SMH @ 67.37, MU 18.16, CME 111.82 RS @ 82.79
Working Orders:
There are no new orders today.
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.
