Market Update:
All eyes are on Friday’s jobs report. Yesterday was a big “up” day and the market and many areas gave it back today. Overall the action in the major averages is still good but we are beginning to see some areas break down. Gold/Silver stocks topped out and are now heading lower. Look to short strength for the foreseeable future, until the GDX and GLD are back above their respective 50 DMA lines. The GLD closed on major support near $125. Steel ($SLX), another strong group in 2016, is testing its 50 DMA line. The bulls should defend it here, if not lower prices will likely follow. The $IBB, biotech etf, is pulling into its 50 DMA line and the bulls want to see that level hold. Just as these areas fell, the financials came to life in recent sessions.
For now the market is acting fine (still sitting tight over the past 7 weeks as it consolidates a big post brexit 10% rally). We will monitor the selling for you, if it spreads we will let you know. Until we see big selling in the major indices, it is important to keep in mind that we are still in a bull market and weakness should be bought, not sold.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well and as of this writing (Tuesday’s close):
A. The service owns: QQQ +5.15%, SMH +12.89%, XLF +3.11% BLK +1.76%
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37, BLK @ 352.79
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.
