Market Insight

FLS Update: Time For An Oversold Bounce 02/09/2016

Market Update:

It is another ugly start to the week as sellers remain in control. Shortly after today’s open, the market tried to rally but sellers showed up and quickly sent stocks lower. For all of 2016, rallies on Wall Street are lasting a few hours which is not a healthy sign. The inability for the market to bounce clearly illustrates how weak the market is right now and tells you everything you need to know. A lot of former growth stocks (FB, AMZN, GOOGL, NFLX, etc) tried to rally this morning but quickly fell into the red as they can’t bounce from deeply oversold levels. In other news, oil prices fell 5% and is once again trading in the high $20 which is not good for sentiment. In the short term, the market is, once again, very oversold and WAY over due to bounce here. on a weekly basis – it will be somewhat encouraging for the bulls to see the market opened lower this week and close higher by Friday. We remain open to any outcome in the short term. Stepping back, we know we are in the early phases of a new bear market. Remember, the rules change in a bear market.

FLS Portfolio

The service is short the market (inverse ETF) and will lower the protective exit in case we get that oversold bounce. If the service is stopped out, it will look to short strength in the near future. On Monday, PSQ gapped above our entry price so for tracking purposes we are using a price of 60.11, not the initial 59.8. As of this writing,

A. The service owns: PSQ -0.08%
B. The service will exit: PSQ @ 58.77

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.

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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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FLS Update: Time For An Oversold Bounce 02/09/2016

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