HI Financial Services Mid-Week Commentary 06-23-2015
You don’t know there is a market problem until there is a problem – CNBC Commentary
What are we waiting for forever 4.5 year’s?
Higher interest rates
The dreaded correction (-10 + drop)
PIGS drama to end/kicked out of the Euro
You don’t have to catch the initial drop in the correction to be profitable for the year
Look at trading like a process not a one-time event
Someone asked if I would roll a spread trade out in time “hoping” for the strategy to become profitable
NO WAY JOSE !!!
In Spread trading you are playing a shorter term trend so I want to follow the current trend.
Now investing is different because you want to buy and hold (while collar trading) to book profits as long term capital gains.
I have short puts on fundamentally sound stocks that are right now trading lower than they should. I am rolling the short put a week before options expiration to make sure I do not get the stock assigned. Not that it matters because any time I place naked short puts I have the capital to cover the purchase of the stock. As you work thru the totals I will have a net credit if assigned and it would lower my cost basis on the stock.
What’s happening this week and why?
Monday Greece blinked and is willing to negotiate terms
Existing home sales 5.35 M vs est 5.26 M
New Home Sales 546 vs est 525
Durable Goods -2.0 vs est -0.5
Durable ex-trans -0.3 vs est -0.3
Where will our market end this week?
Higher still because we have a Greek resolution next Monday and next week is also a holiday shortened week with Friday having the markets closed – 4th of July
DJIA – Bullish with all three crossovers
SPX – Bullish
COMP – Bullish
Where Will the SPX end June 2015?
06-23-2015 UP 2% for the month
06-09-2015 UP 2% for the month
06-02-2015 UP 2% for the month
What is on tap for the rest of the week?=
Earnings:
Tues: CCL, DRI
Wed: BBBY, FUL, LEN, MON
Thur: BKS, NKE, WGO
Fri:
Econ Reports:
Tues: Durable Goods, Durable ex-trans, FHFA Housing Price Index, New Home Sales
Wed: MBA, GDP. GDP Deflator
Thur: Initial Claims, Continuing Claims, Personal Income, Personal Spending, PCE PRices
Fri: Michigan Sentiment
Int’l:
Tues – FR:DE:EMU: PMI Composite Flash, JP: BOJ Minutes
Wed –
Thursday – JP: CPI, Unemployment
Friday – EMU: Money Supply
Sunday – JP: Industrial Production
How I am looking to trade?
Let’s go over unique trades at the end of the options expiration month last Friday
I have stocks sitting alone expecting a buying opportunity because of Greece
F, NVDA, DIS, V, FB, WBA,
BIDU, AAPL ½ , Collared thru August
Questions???
www.myhurleyinvestment.com = Blogsite
customerservice@hurleyinvestments.com = Email
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