Market Update:
Today’s big sell-off illustrates how fragile the market is even as it trades just below its record high. The split tape we have told you about over the past few weeks is becoming “less split” as more and more areas are breaking down/getting in trouble. The Dow & S&P 500 sold off hard yesterday/today after encountering stubborn resistance near their respective 50 DMA lines. The Nasdaq briefly undercut its 50 DMA line but the bulls are doing their best to defend that level. Alcoa kicked off earnings season and is down over 11%, or its largest decline in 5 years. Elsewhere, ILMN gapped down and lost a whopping 25% of its value over night after the biotech company lowered guidance for the third time. If Central Banks were not so involved we would definitely say the market is topping out. But, remember these people will do “whatever it takes” to save markets so the bullish pixie dust can show up at anytime. Remember, September’s low for the major indices is the next level of major support to watch. If that level is broken, Goodnight, Irene. Needless to say, defense is king at this juncture.
FLS Portfolio:
The FLS portfolio added BAX, QQQ and AAPL over the past few days. If the market continues to sell-off, we will quickly move to the sidelines and raise cash. Here’s a snapshot of the FLS portfolio as of this writing (3:27 pm EST),
A. The service owns: SMH +15.79%, MELI +2.61%, BAX -2.83%,
QQQ -1.54%, AAPL +0.13%
QQQ -1.54%, AAPL +0.13%
B. The service will exit: SMH @ 62.96, MELI @ 180.05, BAX @ 46.57,
QQQ @ 116.44, AAPL @ 111.44
QQQ @ 116.44, AAPL @ 111.44
Working Orders:
There are no working 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.
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.
