• Market Insight

FLS Update: Market Yawns At Yellen… 11/17/2016

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Market Update:

The market continues to act well since last week’s strong rally. The fact that the market refuses to fall illustrates how strong it is right now. Remember, there are two ways a market can consolidate a recent move- either move sideways or retrace a portion of the move. In this case, the market is moving sideways and that is the more bullish of the two scenarios. It is also bullish to see small and mid caps breakout and hit new highs today (IWM and MDY). Elsewhere, the market yawned at Janet Yellen this morning even though she was hawkish. That shows us the market is ready for a rate hike- right now. 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 is acting well. 
Here’s a snapshot of the FLS portfolio as of this writing (1:18pm EST),
 
A. The service owns: SMH +19.61%, MU +7.53%
B. The service will exit: SMH @ 65.96, MU @ 16.96
 
 
Working Orders:
 
There are no working orders today
 
 
Q3 Earnings Recap… So Far
 
 
470 (94.0%) companies in the S&P have reported Q3 equivalent earnings
 
13 (2.6) companies in the S&P will report earnings next week
 
Q3 Earnings Summary:
72.9% have POSITIVE EPS surprise
6.2% have NEUTRAL EPS surprise
20.9% have NEGATIVE EPS surprise
 
70.2% have HIGHER EPS year over year
3.0% have NEUTRAL EPS year over year
26.8% have LOWER EPS year over year
 
Q3 Sector Performance (percentage of Positive Surprise):
 
Information Tech: 89.7%
Financials: 84.4%
Consumer Staples: 80.6%
Utilities: 78.6%
Energy: 70.3%
Industrials: 69.2%
Healthcare: 69.1%
Consumer Discretionary: 68.0%
Real Estate: 53.6%
Materials: 51.8%
Telecom Svcs: 40.0%
 
Earnings growth for the SPX the third quarter is 2.7% vs expectations of 2.8%
Ø  Worth Noting: Earnings growth for the 406 non-financials that reported is 0.9%
 
Revenue growth for the SPX the third quarter is 2.2% vs expectations of 2.26%
 
 
 
 

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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