Market Update:
Earnings season has officially begun and we are seeing a softer than expected reaction- thus far. It is important to note that the market has rallied sharply since the election and this could be a classic case of buy the rumor and sell the news. Meaning, the market rallied on the rumor that earnings would increase but now that they are coming in- investors are selling the news. From where we sit, this looks like a normal pullback but it can easily get much worse if we get a big negative headline (geopolitical, earnings, economic, etc). This bull market is 8 years old and considered “aging” by any normal measure. That doesn’t mean that it ends tomorrow just that we are getting closer to the end with each day that passes. We remain in a defensive stance on equities until we see buyers return in a big way (it will only take one or two good up days). A bullish scenario would be to see the market turn around and close higher (and above the 50 DMA line) by Friday. In the short term, as we continue to make our way through earnings season, we will see if that level holds.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting well. The service raised its stops again in recent weeks as the major indices remain somewhat choppy. Here is a snap shot of the portfolio as of this writing (3pm EST)
The service owns: ICE +5.63%, ADBE +16.86%, BABA +13.48%, SPY -1.17%
The service will exit: ICE @58.75, ADBE @ 119.57, BABA @ 103.36, SPY @ 231.47
Working Orders:
| Status | Order | Ticker | Buy Stop | Protective Sell Stop | Risk From Entry |
| Open | Buy | HDGE | 9.09 | 8.91 | -1.98% |
| Open | Buy | GDXJ | 38.58 | 37.71 | -2.26% |
| Open | Buy | ABX | 20.37 | 19.11 | -6.19% |
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.
