Please see the Covered Call Report for November 2015 by clicking the link below:
Covered Calls – November 2015
LP
Dow Jones
May Take On It All – August
It’s been a while since I have updated everyone on everything from this side of the desk and we seem to be as settled in the new office as we possibly can be given everything the market has thrown at us this year. Given the amount of time that has passed since I last updated everyone, I thought I would provide my view on the current state of play along with outlining some of the things we have been doing and what is currently in play along with some ideas going forward.
With the issues in Greece dominating the early part of the northern hemisphere summer it now seems to have stopped making the headlines of every media outlet available. This has seen the Euro trade in a range between 1.0500 to 1.1500 against the USD. European equity markets took the news badly on any negative news but were also very quick to rebound on any sign of an agreement or turnaround in the market. The sell offs provided good buying opportunities and we did so by purchasing some DAX calls through issued trade alerts. All trades that have been recently executed can be seen in the Performance Report that can be downloaded through the Performance Page.
Post Greece, the market then shifted its focus to China and the Federal Reserve in the US. The swings on a daily basis on the Chinese equity markets were significant to say the least but this was to be expected given the massive run up we had seen – 69.84% gain from the lows made in February this year alone!
In the US all eyes are on the September FOMC meeting in anticipation of a possible rise in interest rates. We have seen the USD strengthen against most currencies, combined with commodity prices, QE in Japan and Europe all pointing to more strength in the USD. The big question remains as to how far can this go? If we look at the Australian dollar, we have weaker commodities, slowing demand in China and the RBA still on an easing bias so holidays in the US don’t look like they are going to get any cheaper any time soon. The AUDUSD in on course to touch 70 cents this year in my opinion. On the holiday front the only positive is the lower crude oil prices which is benefiting the airlines but doesn’t quite seem to have made its way to the petrol pump for our benefit. Fuel Prices are higher now that when oil was trading around $100/barrel! – explain to me how this works?!
Looking forward I still have a preference for US equities over domestic equities but having said that, we have done quite well locally but better offshore. Stocks such as CSL have pushed to new highs, The banks have been steady and the miners have been hammered. I have been issuing investment recommendations on the ASX200 and we have simply been buying dips in the index. To date we are doing well with this strategy as you can see in the Performance Report on the Performance Page. Timing has been everything but my core view remains that we should perform better in the second half of the year as compared to the first half. With regard to the US we have also been on the right side of the currency move so not only has it been a case of calling the direction of the equity markets but the currency gains have also improved the returns.
From here, I continue to favour health care, technology, pharmaceuticals, biotechnology, banks and solid trending stocks which continue to deliver. The most notable example being Walt Disney in the US up until the overnight movements. Stock down circa 10%.
I will look to put a note out, post the close of each month with an update. Please use this as an opportunity to ask any questions you might have.
LP
*Change to Profit Taking Level – VISA
I issued a take profit alert on Visa on the 21st July to take profits on this open trade alert with a limit price of $9.30. The stock fell away in the sessions that followed this release and the limit price set was not filled. Overnight, Visa reported an increase in profit for the third quarter and the stock has rallied in the after hours trading session. The stock has traded up $ or xx% in after hours trade.
I am revising the limit order set on the take profit alert. Please see full report below:
V Change Take Profit 24.7.15
Covered Call Report – Returning 17.04% YTD.
The Covered Call Strategy is a very conservative, long term, passive income strategy that can help you make money with monthly income streams, protect portfolio’s in market down turns and increases profitability in markets that are trending higher.
Learn more about this strategy through the website here :
http://pilkingtontrading.com.au/covered-calls-dow-jones/
This month’s report is below. Please let me know if you are interested in learning about this strategy and how it can be applied to an existing portfolio or even how to begin you portfolio.
LP
Covered Calls – August 2015
Take Profit Alert – Facebook 15.7.15
Recently we entered a trade on Facebook. We are looking to close this trade with a 25% return on the option purchase.
Take Profit Alert below:
FB Take Profit Trade Alert 15.7.15
Dow Jones Covered Call List for July
About time we saw green!
Good Morning,
Finally….
Some love, after seeing the index only trade in the red since the beginning of June we were up 7 points on the ASX at yesterdays close.
Dow Jones up 264 points
Crude Oil up 1.65%
Gold up 0.66%
Iron Ore up past $65.00/tonne
I am certainly feeling happy this morning….
Now…
The big question will be whether the ASX will actually end the day higher …
The answer is yes, it will.
So why the rally? Germany may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds, according to two people familiar with the country’s position. A government spokesman denied that Germany is considering such a deal.
U.S. crude stockpiles capped their longest stretch of weekly declines since August. This is good news for oil……
Yesterday, clients received an email with a DAX (Germany 30 index) recommendation to buy the index through whichever means. If you bought 20 Index CFD’s and put aside 4500 EUR margin, you would currently be up over 5K EUR profit this morning. Should see it trade up to 11,500. Currently 11,259.
To Thirsty Thursday!
LP
Trending Tactics – Trading made simple.
Trending Tactics with Pilkington Trading has a fresh new look. Please press the link below to see yesterday’s report that has the current trends and our entry points/stop losses on each product.
Trending Tactics 6.5.15
Trade all of the products in the report from anywhere, at any time with one low commission account.
Receive daily information on new buy/sell signals and where to move your stop-loss in relation to your current positions.
Trending Tactics looks to take the guesswork out of currency, commodity and index trading. Markets can be fast moving and unpredictable, but once they start a trend it can last a long time. This strategy consists of being long or short the instrument at all times with a stop and reversal order in place that moves constantly to limit risk and increase returns.
Since this strategy has been developed (1999), there have been staggering results as you can see from the far right column:
Follow the link to find out more:
http://pilkingtontrading.com.au/trending-fx/
Please register your interest through the Contact Page if you would like to follow this simple, effective strategy.
Busy week ahead – Buy USD
May the 4th be with you.
- This week is likely to be one of the busiest trading weeks for 2015 due to the sheer amount on data, company releases and central bank statements, both here and overseas.
- There was solid bounce in US equities on Friday night is likely to flow through to Asia this morning. There was no trade in Europe on Friday for May Day holiday and London is closed tonight for the same holiday.
- After a harsh winter brought U.S. growth almost to a halt in the first three months of 2015, April’s non-farm payrolls report, due on Friday, will signal whether the world’s largest economy is faring any better in the second quarter.
- MONSANTO: has approached SYNGENTA about a takeover, almost a year after a previous attempt fell apart, according to people familiar with the matter.
- TESLA: unveiled a line of home and industrial battery packs late Thursday, “power wall” batteries—ranging from a $3,000 7 kilowatt-hour wall-mounted unit to a $3,500 10 kwh unit—cost far less than the going rate for large-scale batteries and can be easier to install. Tesla aims to begin delivering units by the summer from its car factory in California.
DOW: +1.03%, S&P500: +1.09% and NASDAQ: -+1.29%
- The AUD has moved well away from 80 cents on the back of the article and it’s very likely that the Statement of Monetary Policy on Friday will fill in the details as to why the RBA moved rates and if there could be more cuts to come – another argument over semantics could be had here. The AUD is going to move very quickly this week.
- With the volume of data, the company and Reserve bank announcements, there will be some big moves in the currencies this week. Above is the US Dollar Index chart that tracks the strength of the USD against a basket of other major currencies. The current holding and respecting of the 95.00 level and 100 day moving average may be a sign of the USD re-strengthening after the past three weeks of weakness. Look to take up long USD positions on the back of recent weakness.
Direct from the Desk Publication
Direct from the Desk is a publication clients receive each Monday, Wednesday and Friday.
The newsletter is designed to give clients a compact, informed glimpse of the major news in the markets as well as current prices (at the time of writing) of major currencies, indices and commodities both locally and internationally. The ‘Chart of the Day’ is accompanied with a small comment about my views on the company/index/currency and the possible moves that I am looking to see.
Please click the picture below to see today’s issue:
Direct From The Desk is a client exclusivity along with all Trade Alerts, Covered Call reports, Investment Strategy reports and all other forms of publications distributed by myself, Pilkington Trading and Gleneagle Securities.
Clients are constantly provided with, but not limited to: investment advice, trade ideas, portfolio management, investment strategies and market updates/news etc. as well as technical support if you ever need it.
If you are interested in opening an account or re-papering with myself at Gleneagle Securities, please contact me to discuss the possibilities and benefits of opening an account and beginning your investment portfolio.
LP
Pilkington Trading 