• Market Insight

FLS Update: Stocks Rally On More Easy Money From Global Central Banks… 09/22/2016

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Market Update:
The market jumped nicely after both the Bank of Japan and the U.S. Federal Reserve reiterated their easy money stance.  The Dow is still below its 50 DMA line but the Nasdaq, S&P 500 and small-cap Russell 2000 are above that important level. Underneath the surface, the “action” is not the strongest -but improving. More importantly, we have to take it for what it is and trade on what we see happening, not what we think will happen. On a monthly basis, the market opened lower and turned higher so this can shape out to be a strong monthly “bar.”  
 
End of Month/QTR Window Dressing
We are approaching end of month AND end of quarter, so barring some large unforeseen negative event, we have to expect the market to drift higher over the next few weeks. If it sells off hard then clearly that will not be a good sign. Because, if the market can’t rally on all this bullish news from the Fed/BOJ, that will not be healthy. At this point, we want to see where the market closes tomorrow and we will have a full report for you with new orders this weekend (unless we sell off hard tomorrow).  A few Fed heads will be speaking tomorrow, so the fun never ends with these people.
 
FLS Portfolio:
The FLS portfolio continues acting well. On Monday, the portfolio added MELI and is up nicely. To protect the gains, we will move the exit up to break-even to make sure this position doesn’t turn negative. As of this writing (3:36pm EST),

A. The service owns: SMH +15.67%, MELI +6.31% 
B. The service will exit: SMH @ 62.96,  MELI @ 180.05
 
Working Orders:
There are no new 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 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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