Market Update: Cracks Beginning To Emerge
As long as the major indices stay above their respective 50 DMA lines, the bulls remain in control. But beneath the surface cracks are beginning to emerge. We saw the market fall hard on heavy volume on 5/17 then rally back on light volume and hit new highs. Then, on 6/9 we saw the Nasdaq/Nasdaq 100 get hit hard – again on heavy volume, and it still hasn’t fully recovered. When you have a chance, take a look at Apple and NFLX on a daily chart. They are now “living” below the 50 DMA line and creating a bearish wedging pattern. Not ideal. Elsewhere, oil prices fell into a bear market today (defined by a decline of 20% from the recent high) which dragged a slew of stocks lower. If we see more high volume selling show up- that could easily lead to a summer swoon. We are way overdue for a nice pullback and the market has a way of fooling most people most of the time. To be clear, there are some areas that are emerging – look at biotechs today for example but overall the action is less than stellar.
FLS Portfolio:
The FLS portfolio continues acting well. ADBE and BABA are solid performers. Yesterday, the service bought FB and AAOI but we don’t like the action. Here is a snap shot of the portfolio as of Tuesday’s close:
The service owns:
ADBE +26.84%, BABA +41.35%, GLW +1.26%, COH -0.80%, AMZN -0.39%, CAT -0.13%, FB -0.10%, AAOI -3.29%
The service will exit: ADBE @ 130.67, BABA @ 113.97, GLW @ 27.64 COH @44.43, AMZN @948.44, CAT @100.94, FB @148.27, AAOI @59.97
Working Orders:
There are no new working orders today. We are comfortable with our current exposure and don’t like how the market is trading up here.
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 50 Park Investments is strictly prohibited.
