• Market Insight

FLS Update: Deutsche Bank Drags The Market Lower… 09/29/2016

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Market Update:
The very split tape we have mentioned all month continues as the Nasdaq 100 and Semiconductors continue to lead while most of the market continues to lag. The Dow & S&P 500 are both rolling over after encountering stubborn resistance near their respective 50 DMA lines.  Today’s “trigger” was a headline that said some clients from the troubled German bank, Deutsche Bank, are reducing collateral on their trades. This sparked a big mid-day sell-off and sparked concern $DB may fail or the selling may spread to other banks. In other bad news for financials, shares of Wells Fargo (WFC) continued to fall and actually took out Feb 2016’s low! Biotechs are also having a bad day as Mylan ($MYL) is sliced below major support. 
 
On a more positive note, NXPI was halted earlier after rumor spread that QCOM will acquire the company. Again, the split tape in real-time. Stepping back, caution is king up here as the market continues to act “sloppy” as investors desperately want clarity and a bullish catalyst. Looking forward, earnings season is front and center and the Street projects earnings to fall for a 6th consecutive quarter (even with the Fed keeping rates artificially low at 0.25%).  As mentioned in our weekend report, the big area of support to watch are September’s lows. Tomorrow is the last trading day for the month and quarter so we want to keep that in mind. Looking forward, we want to see where the market closes tomorrow and will have a full report for you this weekend. 
 
 
FLS Portfolio:
Thankfully, the FLS portfolio continues acting well and has exercised patience in recent weeks and is well positioned in the areas that are “working”. As of this writing (1:26pm EST),

A. The service owns: SMH +17.01%, MELI +2.62% 
B. The service will exit: SMH @ 62.96,  MELI @ 180.05
 
 
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.

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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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