TIB: Today I Bought (and Sold) - An Investors Journal #224 - Europe Small Caps, Japan Govt Bonds.
Malaysians vote out a 61 year standing coalition. Oil prices rise following the Iran deal news. I take profits in Europe and set profit targets on Japan bond yields
Portfolio News
Emerging Market Rout Malaysia is rocked as Mahathir Mohamad comes back to politics to win the election against a coalition that has ruled for 61 years. It is all a bit strange as the new PM had previously served as PM for 22 years - one wonders who caused the problems that pushed the people to change their views and votes.
Maybe the new Prime Minister can undo the problems supposedly created by his predecessor. Economic growth is not one of those with Malaysia ranking 8th on the table I presented yesterday. What was telling was the way the US market responded to the news in the trade of the iShares MSCI Malaysia ETF (EWM) which finished the day over 6% down having been as low as 9.65% down.
This is a great example of market over-reaction. The Malaysia stock market had been closed during election day and will stay closed until Monday - so the price move is based purely on emotions and fear and has nothing to do with trading and economic data.
My holding in EWM bought in June 2106 is now down by 1% - i.e., essentially back to where it started 2 years ago. Maybe we just scored a 6% discount on an economy that is growing more than 5% per annum.
Iran Nuclear Deal Oil markets were unequivocal in their response to the US action on the Iran Nuclear deal. Oil prices are up. Energy stocks are up. Airlines are down. Surprisingly shares of Boeing (BA) went up 1.8% on the day even though they stand to lose 10 aircraft orders.
Note: Bloomberg.com are shifting to a paid subscription model for their articles - 5 free articles and then $9.99 per month for a 6 month introductory offer then $34.99 a month. Time to find an alternate source of news. $10 a month is OK but $35 feels steep.
Sold
db x-trackers - MSCI Europe Small Cap Index UCITS ETF (DX2J.F): Europe Index. Small cap stocks generally lead markets up and then they lead markets down. I have had a profit target on this stock for some time to release cash - that offer was hit overnight for 32% profit since March 2016. The UBS talking heads were saying overnight that they were holding strong on their European positions predicated on solid growth data - this sale is contrary to that thinking. That said, I am heavily invested in Europe across all my portfolios.
Shorts
Japanese 10 Year Government Bonds (JGB): Prices have moved in the right direction - down as yields rise across the developed world. I put in a take profit target on one of the open contracts just above the lows at 15042 (dotted blue line) - last trade hit 15040 in the spiky bar you see in the last week of April
Cryptocurency
Bitcoin (BTCUSD): Price range for the day was $394 (4.2% of the high) for another quiet day. Price did dip below the support line at $9169 but closed the day's trade above. What I like about the chart is the series of higher lows since the bottom was found a few weeks ago.
CryptoBots
Outsourced Bot No closed trades on this account. Problem children (>10% down) list was increased by one with STRAT rejoining at -12% - (15 coins) - ETH, ZEC (-44%), DASH, ADA, PPT, DGD, ENG, GAS, STRAT, NEO, ETC, QTUM, ARK, BTG, XMR.
Profit Trailer Bot No closed trades. Dollar Cost Average (DCA) list was increased by one with IOTA making it to the list and doing 2 levels of DCA.
Something went wrong as I thought I had switched DCA to 1 level only. Of the 10 on the list, 1 was new, 6 traded worse, 2 were level and only one improved (KNC)
New Trading Bot Positions improved to 19.6% (was 19.9%)
This was driven by slight improvement in BTC and ETH. NEO remains the worst coin.
Currency Trades
Forex Robot closed 6 trades (0.24% profit) and is trading at a negative equity level of 23.3% (higher than prior day's 18.2%). This is a worrying level though overall the account is still in positive territory.
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Malaysia Flag By SKopp, Zscout370 and Ranking Update - Create based on the Malaysian Government Website (archive version). Public Domain, https://commons.wikimedia.org/w/index.php?curid=26381227
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers
Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices
Bitcoin: Get started with mining Bitcoin for as little as $25 http://mymark.mx/Galaxy
May 9, 2018
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