Weekly Update Ended July 29, 2017
Last week was generally upbeat in techland saved for that staged event by JPM with their "me-too" macro call on Thursday which initially had no effect on the markets Thursday morning. However, by noon or so that day, the algos turned negative full blast and the Nazz got hit for over 110 points intra-day before closing down about 40 points on the day. This Wall Street staged events are getting more frequent and will continue to happen regularly as our markets keep scaling new highs.
Earnings in mega-cap techland turned out to be an anti-climax as far as Amazon and Google were concerned with both stock dropping 3-4% after their respective results however Facebook was the saving grace last week. I traded out on both Googl and Amazon prior to their print which was the only move to make as far as I was concerned. I received a couple of emails why I didnt short (buy puts) given that I had the foresight to sell ahead of the number? LOL..everyone is an Einstein in hindsight. That is always true. Secondly, I did not sell because I knew their numbers would be perceived as disappointments. No one can predict that and if someone tells you they can, they are flat-out lying to you. I sold because the R/R was not in favor of staying long any more. To me, it was not.
Overnight, Asian markets were mostly higher with the exception of the Nikkei which was down 35 points or 0.17%, Hong Kong traded higher by 345 points or 1.28%, Mumbai higher by 205 points or 0.63%, Seoul closing up 2 or 0.07%, Taiwan higher by 4 or 0.04% and the Big Daddy in Asia, Shanghai trading higher by 20 points or up 0.61%.
Across the pond markets are mixed with the CAC down 0.09%, the DAX higher by 0.18% and the FTSE is higher by 0.32%.
Our futures are slightly green with the e-mins up 2 while Nazz futures are higher by 8 points although we still have a long time to go before our markets open up for the day and for the week.
Early/overnight UGs/DGs are in our little room already. At least, the ones that are out thus far.
The jaysomaney.com account ended up 207% year-to-date versus 175% from a week ago and 125% two weeks ago. Not shabby. The liquidation value as of this past is now at $823,934 with $531,144 of that in cash. In the prior week ago period, we were up 175% YTD, and liquidation value from the closing levels a week ago was at $738,124 just as a point of easy reference for all of you.
As a few of you have pointed out in the past and continue to do so, we are very cash heavy in the account and that is not the optimal situation however I find that with high cash levels, it helps me stay calm when Wall Street decides to stage one of their "generate commish at all costs" events. I do realize that earning 1%/year is not optimal but neither is the alternative as far as I am concerned, especially in options trading.
I am more than happy to buy stock if you all are okay with that. (Email me firstname.lastname@example.org)
Please check your inboxes for a list of trades from last week.
Here we go with the usual part of the update:
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) Will always hold true as far as I am concerned no matter what anyone else thinks on the outside.
This week the calendar was not turned in to me on time so we will have to switch to another format for key events this week.
Notable earnings reports: Pandora (NYSE:P) and Dish Network (NASDAQ:DISH) on July 31; Under Armour (NYSE:UAA), Apple (NASDAQ:AAPL), FireEye (NASDAQ:FEYE), Pfizer (NYSE:PFE) and Illumina (NASDAQ:ILMN) on August 1; Tesla (NASDAQ:TSLA) and Fitbit (NYSE:FIT) on August 2; GoPro (NASDAQ:GPRO), Yum Brands (NYSE:YUM), Shake Shack (NYSE:SHAK), Activision Blizzard (NASDAQ:ATVI) on August 3; Berkshire Hathaway (BRK.A, BRK.B), Cigna (NYSE:CI) on August 4.
IPO quiet period expirations: Snap (NYSE:SNAP), Laureate Education (NASDAQ:LAUR), Bison Capital Acquisition (NASDAQ:BCACU) and Constellation Alpha Capital (NASDAQ:CNACU) on July 31; Altice USA (NYSE:ATUS), Safety, Income & Growth (Pending:SAFE) and SG Blocks (NASDAQ:SGBX) on August 1.
Secondary offering lockup expirations: James River Corp (NASDAQ:JRVR) on July 31; Smart Sand (NASDAQ:SND) on August 1; Shopify (NYSE:SHOP), Artana Therapeutics (NASDAQ:PETX), Interpace Diagnostics (NASDAQ:IDXG) and Ignyta (NASDAQ:RXDX) on August 2; GoDaddy (NYSE:GDDY), American Superconductor (NASDAQ:AMSC) and AmpliPhi Biosciences (NYSEMKT:APHB) on August 3.
For your reading pleasure:
Just a quick reminder that the subscription rates for jaysomaney.com went up on July 22, 2017. The rate change will affect everyone on a rolling basis. So for instance, for those of you that paid their monthly subscription on July 21, 2017, the new rate for you will not take effect until . For those of you that had their subscription renew on July 22, 2017, you are merely required to hit the link on jaysomaney.com and you will be redirected to Paypal where you just have to select the new payment, $99 or $109 (includes text/sms alerts).
Simple as that.
Until next week, may the trading Goddesses/Gods smile on all your trades/dice rolls/coin tosses.