Market Update:
The S&P 500 broke out of a long base yesterday and the Dow Industrials followed suit today. Typically, big base breakouts are bullish especially in a world awash with easy money from global central banks. In the short term, the market is very extended as the S&P 500 has soared over 8% in 2.5 weeks (since the Brexit low)! In the old (pre-easy money) days, a 10% rally for the entire year was considered healthy. Clearly, +8% in 2.5% is a lot and the market is due to pullback.
Going forward, the bulls want to see resistance (2,134) in the S&P 500 become support as we move forward. Remember, for now ladies and gentlemen, all that matters is that the market continues reacting well to easy money. Until that changes, pullbacks should be bought. It is still early in the week and a lot could change by Friday. For now, price action is front and center and everything else (all the negative noise out there) belongs in the back seat.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting well and has navigated a VERY choppy/difficult environment with relative grace. We are look forward to making a lot of progress in the near future if this strong uptrend continues. As of this writing, 2:56pm EST,
A. The service owns: QQQ +0.58%, SMH +0.97%, & FCX +6.98%
B. The service will exit: QQQ @ 106.74, SMH @ 55.79, FCX @ 11.21
B. The service will exit: QQQ @ 106.74, SMH @ 55.79, FCX @ 11.21
Working Orders:
| Status | Order | Ticker | Buy Stop | Protective Sell Stop | Risk From Entry |
| Open | BUY | XLF | 23.43 | 22.37 | -4.52% |
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.
