• Market Insight

FLS Update: Market Is Weakening… 10/27/2016

Facebook
Twitter
LinkedIn
Market Update:
In a normal environment (and this market is anything but normal) we would say without a shadow of a doubt that the market is topping out and ready to fall. This bull market is getting older, not younger and the market action getting weaker. The S&P 500 is only up 30 points from where it was in Q1 2015 and the daily and weekly action is not healthy. Whenever you see a market open higher and close lower day in and day out that is a subtle, but important, sign that the sellers have the upper hand. Whenever you see a big base breakout get negated a few weeks after the breakout- we have to ask what does that mean? Whenever you see a market fail to rally on “bullish” news we have to ask what will happen on “bearish” news? Breakouts are few and far between and the few stocks that do breakout- roll  over and fail. Or barely rally.  
 
The environment is heavily distorted because of the the manic action from global central banks. So far earnings are not healthy, we’ll find out tomorrow the latest reading on GDP and then the Fed meets next Wednesday. This is the last meeting before the election but unless we see an exceptionally strong GDP number tomorrow or Hillary surges in the polls- we don’t expect the Fed to do anything in November. Instead, they will likely wait until December and then “revisit” based on the “data.” This sounds bizarre but it is the world we live in. Eventually, markets will start trending well again but until they do- defense is king. I hear a lot of horror stories of people losing a lot of money out there because they are trading their way into oblivion. Markets will trend well again, the only question is: will you be around/ready to capitalize on it? The good news is that the market action can improve instantly and when it does- we will be all over it for you. Amazon (AMZN), a recent and strong leader, gapped down after the close on numbers and that doesn’t bode well for the market.  As always, we want to see where the market closes tomorrow and will have a full report for you this weekend. 
 
 
Earnings, Earnings, and More Earnings:
Earnings are front and center and so far the reaction is lackluster…at best. Our list of “good” and “bad” reactions can be found below.
 
FLS Portfolio:
The FLS portfolio sold BAX today for a small -3.7% loss. The tape appears to be weakening, with fewer and fewer stocks holding up well in this tape. 
Here’s a snapshot of the FLS portfolio as of Thursday’s close,
A. The service owns: SMH +16.25%, AAPL -1.52%
B. The service will exit: SMH @ 62.96,  AAPL @ 111.44
 
 
Working Orders:
There are no working orders today
 
 
Earnings Season: Good & Bad… So Far
As our long-standing members know, we like to separate the winners and losers from earnings season. Here is a short list as of Thursday at 9:45am EST:
 
 
 
UP:
  1. FDX
  2. NFLX
  3. HAS
  4. DPZ
  5. UNH
  6. GS
  7. TACO
  8. TTS
  9. BABY
  10. HAL
  11. SNA
  12. GGG
  13. LSTR
  14. AXP
  15. URI
  16. ICLR
  17. MAT
  18. DHR
  19. BK
  20. CTXS
  21. FTI
  22. ALK
  23. IMAX
  24. PFPT
  25. MAN
  26. PYPL
  27. MSFT
  28. ETFC
  29. TMUS
  30. LMT
  31. RE
  32. CPLA
  33. CR
  34. LFUS
  35. NCI
  36. PG
  37. VLO
  38. BHI
  39. HMST
  40. IPAR
  41. UTX
  42. STRA
  43. AKAM
  44. NOC
  45. IRBT
  46. NCR
  47. LOGI
  48. GRMN
  49. JNPR
  50. TSS
  51. VNTV
  52. MRCY
  53. FFIV
  54. NOW
  55. TSLA
  56. ALXN
  57. IPGP (thin)
  58. TPX & SFLY (gapped up but beaten down stocks)
  59. JBT (thin)
  60. CELG
  61. VMW
  62. WDC
  63. CAKE
 
 
 
 
DOWN:
  1. AA 
  2. ILMN (gapped down 25% after lowering earnings estimates). Reports Nov 1st
  3. VAC
  4. FRC
  5. JBHT
  6. IBM
  7. BMI
  8. JNJ
  9. ISRG
  10. AZO
  11. MANH
  12. GPC
  13. CREE
  14. TUP
  15. INTC
  16. RAI
  17. UNF
  18. UFPI
  19. IIIN
  20. RS
  21. DXPE
  22. DST
  23. KALU
  24. FLXS
  25. TRV
  26. SCSS
  27. EBAY
  28. UNP
  29. BJRI
  30. SYNT
  31. ATHN
  32. CLW
  33. MCO
  34. SKX
  35. STS
  36. LZB
  37. SHW
  38. MAS
  39. WHR
  40. WAT
  41. WSO
  42. NLSN
  43. CYNO
  44. TMO
  45. UA
  46. MINI
  47. CMG
  48. AAPL
  49. EW
  50. LH
  51. DY
  52.  USNA (THIN)
  53. SPG
  54. ABMD
  55. NVRO
  56. NUVA
  57. AVY
  58. WOOF
  59. DPLO
  60. LUV
  61. AAPL
  62. ABAX
  63. AMP
  64. BXP (THIN)
  65. RMD (THIN)
  66. GRUB
  67. WYN
  68. EXAS
  69. CHRW
  70. JBLU
  71. TZOO
  72. ALGT (Thin)
  73. TREE (THIN)
  74. TFX (THIN)
  75. LLL (THIN)
  76. IDCC (THIN)
  77. CMPR (THIN)
  78. PRXL (THIN)
  79. ORLY
  80. PRLB (THIN)
  81. VAR (THIN)
  82. NTGR
  83. CRS (THIN)
  84. MD (THIN)
  85. TBPH (THIN)
  86. RHI (THIN)
  87. FISV 
  88. CYH
  89. GNC
  90. EFX
  91. RWLK
 
 

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.

Facebook
Twitter
LinkedIn

Here are more articles you may like
Picture of Adam Sarhan

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.

Claim Your Free Guide Today

Give us your email and we will give you the tools to change your life. 

FREE 7 DAY EMAIL COURSE

Learn about Early Entry Points & much more...

© ChartYourTrade | Contact us: website@chartyourtrade.com

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service