Ignore the News, Trade When Good Quality is on Sale
The key to making money in 2013 was to ‘be in the game’. One year ago Fiscal Cliff fears kept many people on the sidelines when stocks got cheap in October through December. The huge New Year’s Eve rally (> 300 DJIA points) caught most people flat-footed and underinvested.
We booked a nice gain on Baker Hughes on strength, while adding to IBM on weakness.
We sold 1 contract of the Lindsay Corporation (LNN) March 2014, $70 put for $4.70 per share.
Market Shadows wrote (sold) two contracts of Coca-Cola (KO) Jan. 2015, $40 puts this morning for a premium of $5.05 per share. Coke is a high-quality, good-yielding stock that presents a low-risk way to generate cash while acting as a proxy for a moderate stock price movement.
It’s only human to want food. SNAP use soared in the wake of the financial meltdown due to the economy’s decline. This increase hasn’t reversed because there has been no recovery for lower income Americans.
Down, then Up.
If you slept through the whole week you would have thought nothing happened.
Market Shadows Virtual Value Portfolio details here mimicked the broad market in the week just concluded. The DJIA was + 1.09% while the NASDAQ dropped (0.42%). Our portfolio was up 4/100th of a [Continue Reading]
The driver of the Tesla Model-S that ignited escaped without injury. The same can’t be said for momentum chasing stock traders.
The Virtual Value Portfolio had another fine week. We gained 1.39% for the full five days, outperforming the major indices. We are three weeks from the first anniversary since this portfolio’s inception. Our original $100,000 has grown to $128,487 without the use of any margin or options.
The indices closed out the ‘Shut up about the Shutdown’ week with widely diverse results.