Market Insight

Pre-Market Update: Bulls Defend Support… 03/27/2018

Note: Due To The Shortened Holiday Week:
This will be our only intra-week update this week

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Market Update: Bulls Defend Support

On Friday, the S&P 500 closed on its 200 DMA line -as noted in several times in prior reports, is important long-term support. On cue, Stocks soared yesterday after news spread that an all-out trade war would not erupt. Here is the opening sentence in our weekend report: “Stocks fell hard again last week as fear of a looming trade war between the U.S. and China grew. I think the fear is overblown but the market’s opinion is all that matters.” I also noted that it is the end of month and quarter which usually has an upward bias. Little did I know that stocks would rally nearly 700 points yesterday but thankfully we have handled (and continue to handle) this correction with grace and look forward to higher prices in the near future.

Note On Selling:

Our note on selling was received very well over the weekend. It’s my job serve as a calm/cooler head when the bullets are flying.

Support Held:

Right now, all that matters is the 200 DMA line holds for the major indices and then Feb’s lows hold. As long as they hold, the longer-term trend remains intact and higher prices will likely follow. Now that support held, and it is a shortened holiday week, and the end of the month and quarter, I have to expect stocks continue to bounce. As always, we want to see where stocks close at the end of the week (Market is closed on Friday) and I will have a full report for you this weekend.

FLS Portfolio:

The service continues acting well as the market trades all over the map. We like to participate when we have a clear advantage and right now the market is too erratic. Our patience will be rewarded and in the interim we will let others have fun with this tape. Here is a snapshot of the FLS portfolio as of Monday’s close:

Positions:

A. The service owns:
ADBE +106.06%, CAT +39.20%, ISRG +31.67%,
RMD +26.47%, MELI +28.72%

B. The service will exit:
ADBE @ 201.56, CAT @ 142.77, ISRG @ 379.77,
RMD @ 93.52, MELI @ 319.77

Working Orders:

There are no new 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 50 Park Investments 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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