Market Update:
Finally, after a very strong 8-week rally, the market is trying to pullback and so far this appears to be a normal and healthy pullback. The fact that this market refuses to fall continues to illustrate how strong the bulls are right now. We do want to note that the major indices all hit record highs for the first time since 1999. We saw a huge climax/blow off top occur during the 1999-March 2000. That was the peak of the dot com bubble. We are in 2016 and there could be a chance that we experience another huge melt-up in the market as the central bank bubble begins a similar climax run. We are not calling for a huge dot com type rally all we are doing is putting it out there so you are prepared if it does occur. The last thing we want would be to miss that type of huge move. The Dow and S&P 500 broke out only a few short weeks ago and so far the action remains healthy on all time-frames. We also want to note that IPOs are starting to kick into gear after a slow/sleepy period over the past 18-24 months. Attached is a list of the strongest performing IPOs over the past 12 months for your review.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well and as of this writing (9:58 am EST):
A. The service owns: QQQ +5.78%, SMH +11.29%, XLF +0.63%, GDX -0.19%, BLK -0.08%
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37, GDX @28.75, BLK @ 352.79
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37, GDX @28.75, BLK @ 352.79
Working Orders:
There are no new orders today. The market is extended.
We will look to add risk in the near future when a favorable risk/reward entry point emerges.
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.
