Update: March 23, 2015

| March 23, 2015

March 23, 2015

 

Portfolio Update

US equities continue on to trade mostly sideways, with a slight upward bias. The S&P 500 is up over 2% on the year, but the path has hardly been a straight line. Meanwhile, small caps have performed much better, with the Russell 2000 up over 5% on the year.

The biggest catalysts for market moves continue to revolve around interest rates.

The latest Fed meeting provided some clarity on the central bank’s view of rates. However, there will still be plenty of volatility circling rates before the first hike ever takes place. You see, while the Fed dropped “patient” from its statement, it just means we’ll have to get our clues from the actual economic data (instead of the Fed language itself).

Basically, the Fed (and investors) will be closely watching economic reports for the next several months to determine when rates finally need to go up. Areas of focus will be wage growth, employment numbers, consumer confidence, and anything having to do with inflation.

Until rates actually do go up, there will likely be mostly sideways action in stocks. The general trend will remain upward. However, it will probably be slow moving unless new information comes to light.

Now, let’s take a look at the portfolio highlights…

 

Portfolio Highlights

Just a quick note:  We won’t update every open position every update.  I try to focus on the positions that have some significant news or price movement.

  • Yahoo (YHOO) July 46 Calls – Yahoo broke out of a narrow trading range and has reached the key 50-day moving average. There still may be some sideways trading ahead, but the first breakout was nice to see. Keep in mind, we have all the way until July on this position.

 

  • General Cable (BGC) May 15 Calls – BGC continues to impress. The stock spiked on possible buyout news and we hit our conservative profit taking point last week. In fact, the trade has been as much as a 140% winner. Aggressive traders can hold up to $21.

 

  • Silver Wheaton (SLW) June 24 Calls – I thought SLW was dead in the water, but it’s surprisingly come back from the edge. While conservative traders are out of the trade, aggressive traders still have a shot at profits now that there’s been a major reversal. As a reminder, we still have until June on this trade.

 

Category: AOA Updates