Weekly Update Week Ended April 15, 2017
To say we have seen the best of times and the worst of times in these past two weeks is an understatement. I will be the first to admit that the events of the last two weeks or so (Syria, Afghanistan and North Korea) caught me wrong-footed but on the flip side I will come back equally quickly as well.
Markets were looking for an excuse to go down and the re-opening of war-like situations on three fronts provided the reason. As always, techland remains the first and only go-to source for cash or the first area to take a hit which is how its always been but also remains the first choice for growth. Probably the only choice.
We are up 8% YTD as of Thursday's closing levels and yet again our futures are indicating a slightly lower open as continued uncertainty over NK looms large and continues to provide an excuse to go lower. On the flip side (there always is a flip side-LOL) it could be setting up well going into techland ER starting with NFLX tonight.
We shall see.
I continue to carry very high levels of cash in the account but will make a move this week and maybe as early as today even. We shall see what the day holds.
AS far as Fed heads this week--
Confirmed Fed Speeches:
- Esther George ( )
- Eric Rosengren ( )
- Neel Kashkari (
On the ER front we have the following companies on tap starting with NFLX tonight post the closing bell.
- Mon 4/17
- Open: M&T Bank (MTB)
- Close: United Continental (UAL), Netflix (NFLX), Celanese (CE), Barracuda Networks (CUDA)
- Open: Bano of America (BAC), UnitedHealth (UNH), Johnsons & Johnson (JNJ), Goldman Sachs (GS), Progressive (PGR), Omnicom (OMC), Grainger (GWW), Harley-Davidson (HOG), GNC Holdings (GNC)
- Close: IBM (IBM), Rogers Comms (RCI), Intuitive Surgical (ISRG), Lam Research (LRCX)
- Open: Morgan Stanley (MS), Abbott Labs (ABT), U.S. Bancorp (USB), BlackRock (BLK), TD Ameritrade (AMTD)
- Close: American Express (AXP), Qualcomm (QCOM), CSX (CSX), eBay (EBAY), Steel Dynamics (STLD), United Rentals (URI)
- Open: Verizon (VZ), ABB Lyd (ABB), Travelers (TRV), Danaher (DHR), BNY Melon (BK), PPG Industries (PPG), Sherwin-Williams (SHW), KeyCorp (KEY), Snap-On (SNA), IMAX (IMAX)
- Close: Visa (V), Mattel (MAT), E*TRADE (ETFC),
- Open: General Electic (GE), Honeywell (HON), Schlumberger (SLB), NextEra Energy (NEE), Stanley Black 7 Decker (SWK), KC Souther (KSU)
If anything that has served as a reminder regarding what I have been saying forever it is the events pf the last two weeks--
PLEASE KEEP YOUR POSITIONS SMALL (or large) ENOUGH TO STAY IN LINE WITH THE SIZE OF YOUR ACCOUNT.
I have been doing this for a long long time and although I hate giving back the gains we have seen, I have no doubt about coming back. More importantly, high risk and very high reward is how I have always invested unless it's the IMA part of our business which is tailored specifically to the client. So hang in tight and before you know it the account will be ahead of where it was two weeks ago.
A continued reminder for all of us.
Please keep your positions in size with your account size (value). Mot 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:
Until the next week, I hope each and every trade/investment is a profitable one for each of you.