Market Update:
The market refuses to fall and the fact that it refuses to fall -illustrates how strong the bulls are right now. Pullbacks are lasting 24-48 hours which is very short. A market that can not pullback is one that wants to move higher from here. The big fundamental and bullish backdrop remains easy money from global central banks combined with a lackluster economy. Outside the jobs data, the rest of the economy is not doing well (evidenced by anemic GDP that continues to miss estimates). Bigger picture, the Fed leans heavily to the left and Mr. Trump has made it clear that he will replace Yellen if he wins. Unless the economy surges between now and Nov, we highly doubt the Fed will raise rates anytime soon. The market knows that and that’s why we continue to grind higher. To be clear, the market is extended up here and eventually will pullback into support (prior chart highs and/or moving averages). It is a matter of when, not if. Until then the bulls remain in clear control. We want to see where the market closes tomorrow and will have a full report for you this weekend.
FLS Portfolio:
Thankfully, the FLS portfolio continues acting very well and as of this writing (12:32pm EST):
A. The service owns: QQQ +5.66%, SMH +9.74%, XLF +0.55%, GDX + 1.81%, BLK -0.54%
B. The service will exit: QQQ @ 110.85, SMH @ 58.65, XLF @ 22.37, GDX @28.75, BLK @ 352.79
Working Orders:
There are no new orders today. The market is extended.
We will look to add risk in the near future when a favorable risk/reward entry point emerges.
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.
