Market Update:
Stepping back, (barring QE 4 or more money printing of some sort) we are still in the early stages of a new bear market for stocks. At this point, we continue to bounce from deeply oversold levels.
A Low, Not THE Low:
So far, last Wed’s intra-week update was spot on as stocks continue to “bounce” from deeply oversold levels. Last Wed we wrote, “Barring another wave of massive selling, it appears the market is trying to put in a near term low today and it looks like stocks are ready to bounce from their deeply oversold levels.” Since then, in classic fashion, stocks have bounced nicely off their lows. The key now as we make our way through this busy week of earnings and economic data is to see how stock react to all the “data.” Several well-known stocks are reporting this week (Apple, FB, AMZN, just to name a few), the Fed concludes their meeting tomorrow (mostly likely they will be dovish) and the latest reading on
Gold And Silver Back On Our Radar:
GDP will be announced on Friday (just a few highlights from this week). We also want to note that Gold and Silver (GLD, SLV, GDX, GDXJ) are catching a nice bid and are doing their best to bottom. Also we will be watching gold stocks in the near future and see if this bounce continues. ABX is one of the strongest stocks in the space and we’ll see if the others can play catup to the upside. Near term ABX is overbought and we do not want to chase it up here. Additionally, Gold and silver (and gold and silver stocks) are still in multi-year bear markets (they topped out in 2011) so this could be another bull trap. That’s why we want to wait and see how gold/silver act in the near future and see how they pullback. This is just something that jumped out at us today and is on our radar as a potentially new area that is trying to emerge from deeply oversold conditions.
FLS Portfolio:
The service got stopped out of the SPY position at breakeven and did not lose money. We know markets remain deeply oversold and due to bounce here. If the market bounces, we want to be involved. That said we will work the following order:
Positions:
There are no positions right now
Working Orders:
| Status | Order | Ticker | Buy Stop | Protective Sell Stop | Risk From Entry |
| Open | Buy | IWM | 101.71 | 98.75 | -2.91% |
