Market Update:
The market has moved sideways over the past 7-weeks as the it pauses to digest the very strong 10% post brexit rally. Thus far, the action remains healthy as the moving averages are playing catch up. The Dow Jones Industrial Average is testing its 50 DMA line and the bulls are doing their best to defend that important level today.
If you watch the market closely, on an intra-day basis, it is a snooze-fest and is as exciting as watching paint dry. Stepping back, there are a lot of bears out there, even with the market trading near record highs (that is a bullish contrary indicator). The fact that the market refuses to fall is bullish and suggests stocks want to rally from here. We are seeing a few areas begin to break-down (mainly commodities such as oil, steel, and gold stocks). If the selling spreads, we will let you know, but until any real damage shows up, the bulls remain in control. Tomorrow, we get the always fun jobs report. All we care about is how the market reacts to the news. Even if the report is strong, the overall economic data remains weak and we doubt the Fed will actually follow through and raise rates in September. Especially, so close to the election.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well and as of this writing (3pm EST):
A. The service owns: QQQ +5.14%, SMH +13.49%, XLF +2.48% BLK +0.35%
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37, BLK @ 352.79
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.
