Weekly Update Ended June 17, 2017
Last week we saw a continuation of the WS orchestrated melt-down from June 9, 2017, which was made worse by the so-called fat-finger trade when Goldman Sachs realized that their note was not having the desired effect in the markets most of thatmorning. Of course, all of last week there was no respite from the negativity and talk about rotations/tech being over-valued led to an almost panic even among more seasoned investors/traders.
This morning our futures are indicating a higher open as global markets are in the green and maybe distancing themselves from the hype and manipulation in our markets which is now a constant. That does not mean that we are out of the woods by any means. In fact, we saw some of that negativity this pastwhen Amazon announced the Whole Foods acquisition which is an excellent move but immediately bubblevision trotted out the boo-birds and the kindly uncles to talk down the deal.
It's still early for the sellside to come out with their reports however I am almost positive that we will get some sellsider who is already bearish (and wrong) on Amazon to come out with a negative report slamming the deal. IN addition, after the success Goldy had with their note, don't be surprised to see a "me-too" from someone else.
"Me-too" rarely works so we have that on our side.
In the tech hatred of last week, the jaysomaney.com account took a beating and ended the week up 123% for 2017 but beat-down from the 170% we were up at the end of the prior week. The liquidation value of the account stands at $598,328 as of the close of trading this past and $446,259 of that liquidation value is in cash.
I did some buying last week despite the tech apathy, however, we will need two or three days of techland buying to see the results of those buys. You can check your inbox for details on the trades that were made this week.
Judging by the conversatons we had in our little room last week and by the content of the emails I received last week, the following takes on an increased level of importance going forward.
Please keep your positions in size with your account size (value). Most importantly please remember that I am running a marathon here and not a sprint. I am in no hurry whatsoever for any position and thus will not enter a position unless I feel the risk/reward is stacked in my favor. Yes, I will occasionally have positions work against me despite the risk/reward prior to the trade but if I was batting a thousand, none of us would be in our little room. We would all be on our own private islands. Even more important for all of us to remember that trades and opportunities will come no matter what the markets are doing.
Please, please don't roll the dice and don't bet on any one single position without keeping the size relative to your overall account. I promise you even 1 or 2 call options at a time add up to spectacular returns over time.
There is nothing worse than seeing someone (new or experienced) blow up his/her own account by going "all in", long or short. Please avoid those sort of "investments" As my dad used to tell me all the time, "Rome wasn't built in a day".
Remember together we will all get there, wherever that may be for each of us individually.
Not a sprint but a marathon. (This is the most important takeaway for all of us)
On tap for this week:
Fed heads out in droves this week:
Confirmed Fed Speeches:
- Monday 6/19
o William Dudley ( )
o Charles Evans ( )
o Stanley Fischer ( )
o Eric Rosengren ( )
o Robert Kaplan ( )
o William Dudely speaks ( )
o James Bullard ( )
o Loretta Mester ( )
Believe it or not, but we are about 2-3 weeks away from earnings season again.
- Mon 6/19
o Open: Lennar (LEN), Fang (SFUN)
o Close: Adobe (ADBE), FedEx (FDX), Korn/Ferry (KFY), La-Z-Boy (LZB), Red Hat (RHT)
o Open: CarMax(KMX), Winnebago (WGO), Actuant (ATU)
o Close: Oracle (ORCL), Steelcase (SCS)
o Open: Accenture (ACN), Barnes & Noble (BKS), Commercial Metals (CMC)
o Open: Blackberry (BBRY), Finish Line (FINL)
For your reading pleasure:
Until next week, may the trading Goddesses/Gods smile on all your investments/trades/dice rolls.