Weekly Update Ended May 20, 2017
Last week we woke up to the news of FBI Comey's firing and thennight reports were released in the press that President Trump had asked then-Director Comey to cease investigating former National Security Advisor Michael Flynn. That led to the worst one-day drop for 2017 and also the worst one-day drop since President Trump was declared the President. So with political shocks affecting us the first part of the week, the week ended not too shabbily after all was said and done. I guess rational investors realized that the underlying fundamentals in techland and elsewhere were unchanged.
The President's first trip abroad seems to be off to a fine start with some major several hundred billion dollar deals being signed between Saudia Arabia and US companies thus far. Of course, on the flip side, we had the North Koreans test fire another missile over this past weekend as well and I am sure the boo-birds/kindly uncles will be out and about regarding that nut-job in NK. Yes, there always is a flip side.
We are now up 133% year-to-date and the jaysomaney.com account has a current liquidation value of $625,000 and change, which is lower than the prior week thanks to the drubbing in the markets this past and the fact that a lot of our major positions basically tread water last week. In the options world, treading water is disadvantageous as you all know.
As I have asked you in our little chat room, please spread the word amongst your family, friends, and colleagues about our site and also please stress to them the fact that on our site every single trade is live, time-stamped and verifiable. Almost every other site out there will never ever put their record for scrutiny like I do and most importantly almost every other site out there seems to specialize in phantom, after-the-fact positions. That is you will have sites that will post that they are selling this position or that position for a huge gain when they never ever talked about getting into that position in the first place. Or you will have the opposite happen if a stock is down and these folks will suddenly post that they have been short the said stock. As each and every one of you can vouch for every trade on our site, is 100% legit whether it's a good one, great one, bad one or a total loss.
Some of the changes I made in our portfolio last week are as follows:
I began the week with us cashing in on our BABA 115 calls and rolling them over to a higher strike.
I also added to our position in Micron and NetEase last week. In addition, I closed out a position in Micron that was expiring this pastas well.
I also closed out our 80 calls in SINA at the beginning of the week and entered into the 85's ahead of the ER event. I again cashed in on the 85's at the end of the week in SINA and rolled over to a higher strike again.
Closed out GOOGL ITMs for GOOGL OTMs.
Closed out our AAPL SOTMs to slightly further SOTMs
Entered a new position in AVGO
Closed out our OCLR short PUT position and banked the entire amount.
PS: I am not sure whether I will continue highlighting these weekly moves unless I hear from you all otherwise, since all the subscribers get the trade alerts the moment they happen anyways, buy or sell.
The current week on tap (back to a heavy Fed head schedule):
Confirmed Fed Speeches:
- Monday 5/22
- Neel Kashkari ( )
- Patrick Harker ( )
- Neel Kashkari ( )
- Patrick Harker ( )
- Charles Evans (
- Neel Kashkari ( )
- Robert Kaplan ( )
- James Bullard ( )
- John Williams ( )
- Mon 5/22
- Open: Booz Allen (BAH), Cheetah Mobile (CMCM), Ferroglobe PLC (GSM)
- Close: Agilent (A), Nordson (NDSN), Luxoft Holding (LXFT)
- Open: AutoZone (AZO), Toll Brothers (TOL), Cracker Barrel (CBRL), DSW (DSW)
- Close: Intuit (INTU), Aegean Marine Petrol (ANW), ViaSat (VSAT), HEICO (HEI), Take-Two (TTWO)
- Open: Lowes (LOW), Bank of Montreal (BMO), Advance Auto (AAP), Triumph Group (TFI), Tiffany & Co (TIF), Dycom (DY), Chicos FAS (CHS)
- Close: HP (HPQ), SpartanNash (SPTN), PVH (PVH), NetApp (NTAP), CSRA (CSRA), Williams-Sonoma (WSM),
- Open: Royal Bank of Canada (RY), TD Bank (TD), Best Buy (BBY), Medtronic (MDT), Burlington Stores (BURL), Abercrombie & Fitch (ANF),
- Close: Costco (COST), GameStop (GME), Ulta Beauty (ULTA), Lions Gate (LGF.A), Marvell (MRVL), Nutanix (NTNX), Brocade (BRCD), Deckers Outdoor (DECK), DXC Technology (DXC ? only CSC results)
- Open: Big Lots (BIG)
A continued reminder for all of us. I know most of you must be sick of reading this but I feel compelled to keep this part of the email included just so that we are all reminded to keep our positions sizes from getting too big and then ending up blowing the account up.
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.
For your reading pleasure: