Update: May 31, 2016

| May 31, 2016

May 31, 2016

 

Portfolio Update

Summer is pretty much in full force, but investors haven’t walked away from the market just yet.  The stock market has performed well lately on stronger economic news, and has also gotten a boost from oil.  All eyes will be on the Fed as an important June FOMC meeting approaches.

The S&P 500 is up nearly 4% for the year. It may not sound like much, but it’s near the highs for the year, and well off the lows.  The Russell 2000 has turned positive and is up 2% year-to-date.  The biggest laggard is the Nasdaq 100, which is still down 1% for the year… but it has also gained quite a bit from its lows.

Crude oil briefly ticked over $50 per barrel and is up 13% for the year.  Gold is also up 13% for the year after being up over 20% just a few weeks ago.  While gold and silver have retreated somewhat, bonds are still doing well overall, with the 30 year bond up over 7.5% and the 10 year up 3%.

The markets are paying close attention to economic numbers and Fed comments.  Although the market doesn’t put much weight on a June interest rate hike, that could change if stocks keep moving higher or economic news comes in much better than expected.  We’ll see what the next couple weeks bring.

Let’s take a look at some 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.

  • Western Refining (WNR) June 21 Calls – WNR continued climbing after our last update, but eventually hit resistance at the 20-day moving average. With oil prices moving higher, we should get another shot for the stock to break through resistance before June expiration.  Peak gains so far in WNR are 71%.

 

  • JP Morgan Chase (JPM) June 60 Calls – We had immediate success from our JPM trade and then it pulled back a bit after earnings settled in… until last week when the share price rallied. The position has finally paid off for aggressive traders as we hit our final exit point.  Peak gains are 350%!

 

  • Archer Daniels Midland (ADM) June 37 Calls – ADM skyrocketed higher this past week on an analyst upgrade. The agricultural commodities company has shot above our aggressive profit-taking point, so everyone should be out for a profit. Peak gains on this position are 267%!

 

Category: AOA Updates

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