Market Update: Stocks Are Strong
Stocks are pulling back as they pause to digest the very strong rally we just experienced. The market remains very strong and is overbought and extended to the upside. It would be perfectly normal (and healthy) to see the major indices pullback a little to digest the recent and robust really we just experienced. The key now is to analyze the health of the pullback (so far it is very healthy) and wait to see how the market reacts to the news that will hit over the next few days. I’m quoted in today’s CNBC article and it does a great job outlining what lies ahead for the week – here.
Emerging Area: Gold & Silver & Other Commodity Stocks
As I scan the market today, one area that shows up on my screens are beaten down commodity stocks. Speficically, I’m seeing good price/volume action today in a slew of gold/silver stocks such as: KGC, NEM, ABX, AUY, RGLD (nice setup), and GLD/SLV just to name a few. We’ll see how this plays out especially, as the market pulls back from extended levels. Stepping back, commodities are extremely undervalued as stocks continue to sport lofty valuations.
FLS Portfolio:
The FLS portfolio continues acting very well! Ridding winners and occasionally taking mall losses, are the key to long-term success on Wall Street. The service was stopped out of HLF yesterday for a small -4.96% loss. Here is a snap shot of the portfolio as of Tuesday’s close:
The service owns:
ADBE +28.75%, BABA +27.29%, AAPL +6.52%, GLW 0.92%, COH 0.93%, FB +0.13%
The service will exit: ADBE @ 130.67, BABA @ 113.97 AAPL @ 148.77, GLW @ 27.64 COH @43.57, FB @145.27
Working Orders:
As mentioned in our weekend report. The market is extended up here and due to pullback. Plus, we are comfortable with our current exposure. Therefore, there are no new open 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 50 Park Investments is strictly prohibited.
