Market Insight

Stocks Rally As Earnings Season Begins 04/14/2016

Market Update:

On Tuesday, we presented the bullish case for stocks (4 points repeated below). Stocks soared since then, helping the S&P 500 make a new higher high when it jumped above Dec’s high of 2081.56. The market remains very strong as buyers continue to show up and quell any and all bearish pressure. Even today, gold is taking it on the chin, breaking below its 50 DMA line but the market refuses to budge. The bulls deserve the benefit of the doubt until any meaningful selling emerges. We are watching gold and steel stocks closely because they led on the way up and if they turn lower, it could spell trouble (especially if other areas roll over) for the market. Until, we see any major selling the major indices remain perched below record highs and clearly deserve the benefit of the doubt. How can the market rally on lousy economic and earnings data? Two words: Easy Money. We want to see where the market closes tomorrow and will have a full report for you this weekend.

Big Bullish Picture:

1. There has been virtually no selling since the Feb 11th low.

2. EASY MONEY STILL IN PLAY.

3. Major indices are sitting to consolidate a very strong rally from the Feb 11th low. Until we get any sign of real selling. Market action is bullish. Of course, this could be a big broad top but easy money continues to distort the playing field and -for right now- bulls remain in control.

4. The S&P 500 is just below a record high

FLS Portfolio

We are comfortable with our exposure right now and will look to buy more on constructive action in the near future as we make our way through earnings season. As of this writing, 2:45 pm EST,

A. The service owns: QQQ +11.40%
B. The service will exit: QQQ @ 106.37

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 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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