Update: May 8, 2017

| May 8, 2017

May 8, 2017

 

Portfolio Update

As I write this, the market is hovering around the 20,900 mark.  

Could we flirt with new highs soon?  Sure.

Could the entire market crumble and fall? Why not?

Anything is possible… and to be honest, I don’t think either scenario is likely.  I think we’re in a holding period for another few weeks as the markets get their handle on the summer markets.

Remember, there’s a famous saying… “Sell in May and go away…”  and many investors believe it.

If we see a selloff, it could be as simple as investors following the saying.

Now, counter that natural downdraft with the changes Trump is placing in Washington.  The changes alone to the tax program could bump corporate profits… and drive cash repatriation.  Add to that his massive desires to build and we’ve got a great driver of the economy!

Regardless, we can make money from the markets.

Let’s look at the portfolio.

 

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.

  • TIF May 19 $85 Calls… We have really nice profits on this trade and have had numerous opportunities to take profits.  If you still own this option, sell ASAP and take your gains!  
  • MT June 16 $10 Calls… This stock is looking weak… I’d exit now to conserve capital… only the most aggressive traders should hold.
  • The bank trades:  JPM, C, and BT… We’re not seeing the rally we want in the bank stocks.  I’d take money off the table here… only the most aggressive traders should hold.
  • KBH and BZH… Our protective puts are good insurance… if we see a market swoon in May or June, these could jump in value.  Keep holding.
  • F & GM…  Our protective puts are good insurance… if we see a market swoon in May or June, these could jump in value.  Keep holding.

 

Category: AOA Updates

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