Gleneagle

Morgan Stanley says ‘Time to Buy’

If you have ever thought about investing in the markets or when to add to a portfolio, now is the greatest opportunity we will see for years to come. Read on and access the link below to see where I’m coming from…

I thought I would share with you Morgan Stanley’s latest take on international equity markets.

‘Morgan Stanley has issued a “full house” buy alert on international stock markets for the first time since early 2009, effectively calling the bottom of this summer’s equity slump.’

We have been beaten and abused by the markets throughout August and we have really felt the effects. The local market was down 17.8% at one stage from it’s highs made only 3 months prior in April this year. US and European equities are hurting but as the saying goes, ‘Buy when those are fearful’. It takes courage and your remaining capital to take advantage of these excellent opportunities when they arise. We need to take advantage of these opportunities.

Lets not forget, this is not a GFC! We have strengthening economies both in Europe and the US. We have stimulus up to our ears, encouraging investors to seek returns in the equity and housing markets. Holding cash in these environments is criminal. The market is falling on fear and bouncing on optimism of a bottom being formed. The Devaluation of the Chinese Yuan has been the catalyst across global markets for the sell off. There are concerns of the Chinese economy starting to contract but this has been in the news for the past 18 months, so why the fear now?

As I have mentioned in previous notes, I believe we will see local and offshore markets pushing back towards their highs by the end of January as this crash is all forgotten about and everyone takes advantage of the great yields and buying opportunities on display now.

Read Morgan Stanley’s take on it all:

http://www.telegraph.co.uk/finance/11837853/morgan-stanley-capitulation-MSCI-Europe-equities-China-bank-stocks-1998-bonds.html

If you have the capital preserved, now is a better time than ever to begin or add to your portfolio.

Let’s chat.

Update and New Trade Alert

How I currently feel. We carry on though…

It’s been a wild month of August. We have seen equity markets around the world shed billions of dollars and the losses in percentage terms managed to hit double figures. All in 3 weeks and all without any real reason in my opinion. To take advantage of what I believe will be a bumper run into the end of the year and the beginning of 2016, I have issued a near term trade alert on the DAX Index (Germany 30 Index), based on current price action, oversold indicators and the true belief that we will see the markets shake this fall and be back within the trading ranges seen before the recent collapse in the next 3 months.

There are plenty of opportunities out there and I am currently viewing WPL, WBC and TLS as great buying opportunities on local soil. Apple, Wells Fargo and Citigroup are my top names over in the US. Let me know if you would like more information about what I have my eyes on, how we are managing risk in this volatile environment and how I am looking to generate some returns.

Click the link below for the latest trade alert. As mentioned, in this environment we are looking for limited risk, unlimited potential trades due to the nature of the beast that is the general stock market at this point in time.

DAX Trade Alert 1.9.15

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.

Pilkington Trading Performance Page

Hi All,

A quick note publishing the establishment of the Performance page on the website.

The page will be kept up to date on a constant basis with the strategies and trades entered and the performance related to them.

The spreadsheet that is downloadable from the page will cover the details and performance of:

Issued Trade Alerts – all issued since 2012
High Yield Income Strategy (AUS) – all trades entered since joining Gleneagle Securities (March 2015)
High Yield Income Strategy (US) – all trades entered since joining Gleneagle Securities (March 2015)
Conservative Income Strategy (Dow Jones – US) – ongoing return since December 2013 as well as 2014 Calendar Year Performance.

Let me know if you have any questions pertaining to this publication or if you would like to find out more about myself, my investment services, Gleneagle Securities or anything else.

New Trade Alert – Citigroup 28.7.15

Hi All,

Please see new Trade Alert on Citigroup. Press the link below to access the trade alert:

C Trade Alert 28.7.15

Taking Profit – Visa – 5 days – 32.86% return!

Hi all,

Please see take profit alert on Visa below.

Interested in getting exposure to these trade alerts? Please call or email me through the Contact page.

V Take Profit 21.7.15.docx

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.

Covered Calls – August 2015

New Trade Alert – Visa

On the back of our 25% + profit taken on the recent Facebook trade, my attentions have turned to Visa.

Please see the Trade Alert on Visa below:

V Trade Alert 16.7.15

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.