TIB: Today I Bought (and Sold) - An Investors Journal #372 - US Industrials, Marijuana, Cybersecurity, European Banks, US Interest Rates

Market sideways nerves continue. A few rumbles in geopolitics does not help. Trade action is profits in cybersecurity and a few more covered calls.

Portfolio News

Market Jitters Return

Markets get caught up in jitters about Fed, about trade, about the world, and lies.

They just want to drift down for a while. Jerome Powell testimony to Congress did not help any. I doubt they understand him but the question about the Powell Put threw him too. Robert Lighthizer testimony in Congress did not persuade markets that there was a timetable for a US-China trade deal. Drifting.

Medicare For All

Biggest imapct on any sector in markets was Democrats introducing a bill on Medicare for All.

All the insurance related healthcare providers took a hit. In my portfolios, CVS Health Corporation (CVS) which only recently acquired Aetna Healh was down 3.59% on the day and now 9.4% on the week.

Geopolitical Concerns

While a North Korea summit might be soothing some geopolitical concerns, there is a lot else going on that bothered markets

India retaliates with airstrikes into Pakistan following the bus convoy bombing last week by Pakistan-supported terrorists. Pakistan shoots down Indian aircraft in disputed Kashmir airspace - or was it in Pakistan? There is an Indian pilot in Pakistan hands. Big worry is both countries have nuclear weapons.

I am holding ETF positions in both Pakistan (PAK) and India (EPI) predicated on strong GDP growth. Not looking very rosy just at the moment but not disastrous. Investors are worried elsewhere and have not bailed out (yet).

Meanwhile Venezuela is hotting up too with soldiers blocking aid convoys from entering the country.

Leader of National Assembly, Juan Guaido flies to Brazil. Will Maduro let him back?

At least news from United Kingdom is better with Theresa May fighting off a party revolt (for now). British Pound climbs again.

Bought

Wabtec Corporation (WAB): US Industrials. Noticed that the allocation of stock from the GE spin-off of its rail business was only 2 shares (after selling off the fractional share the day before). Placed an order to top up to 100 shares so I can start writing covered calls. Partial fill after hours.

Sold

Palo Alto Networks, Inc (PANW): US Cybersecurity. Palo Alto announced results pointing to a very strong quarter. Price surged more than 10% initially. Jim Cramer sent out a note to close on the surge. Closed out for 46% blended profit since November 2018.

Many of you will know I like to average down entry points when trades go against me. Case in point here. 2 entries 2 weeks apart with the second one $20 lower = $200 extra profit on this close. (I only bought 10 shares each time). Nice to buy just off the lows.

Next point. Profit on this trade alone more than covered the cost of subscribing to Jim Cramer's Action Plus Portfolio service. I might have stumbled upon PANW myself as I was investing in cybersecurity as a theme. His research just tipped over an idea in an area I was following anyway. It does pay to buy research and you have to do your own due dilligence.

Income Trades

4 more trades executed overnight.

Top 2 continue the process of writing covered calls against European banks. Initial set up was to aim for 10% price improvement which is where the targets started last week (3rd column from right) . Those gaps have closed a bit with rising markets. As we get closer to expiry I am happy to reduce the premium received - 0.5% for 2 weeks is essentially the same as 1% for 4 weeks (Left hand To Close column). I am treating the Direxxion Inverse Treasury Bond ETF (TMV) in a similar way. Stock has been trading in a narrow range - might as well grab some income along the way and let the market find the exit point.

Tilray, Inc (TLRY): Canadian Marijuana. This trade warrants special attention. I was looking at options pricing for spreads and was struck about how high implied volatility was. For a 6.6% move to strike price I was able to grab 3.87% premium. That feels like free money as option buyers clearly expect another price surge. I am happy to deliver the stock as I have my marijuana investments somewhat diversified. Too bad Canadian options markets are not as well developed as US ones.

Cryptocurency

Bitcoin (BTCUSD): Price range for the day was $164 (4.3% of the high). Price wanted to test lower and then found buyers holding above the short term support level I drew in yesterday. The shape of the bar suggests to me that price wants to go higher.

Ethereum (ETHUSD): Price range for the day was $13 (10% of the open). That was a whipsaw day with price testing below the $132 support and pushing also past prior day high and finishing above support.

CryptoBots

Profit Trailer Bot Two closed trades (1.57% profit) bringing the position on the account to 6.01% profit (was 5.97%) (not accounting for open trades).

Dollar Cost Average (DCA) list remains at 4 coins with all coins going down

Pending list remains at 11 coins with 0 coins improving, 4 coins trading flat and 7 worse - but moves are small. Market did spend some time in Sell Only Mode

PT Defender continues defending 11 coins with one defence trade on OMG completed.

New Trading Bot Trading out using Crypto Prophecy. DCA trade on VET closed for 1.71% profit. Chart shows why I get tempted to change model and split exit into two take profit targets - one at 1.85% and the other further up the bands. Not going to change as I have too many half trades that never made TP2.

Currency Trades

Outsourced MAM account Actions to Wealth closed out 2 trades for 0.3% profits for the day. Back to trusty AUDNZD trades.

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.
India/Pakistan flags image is in public domain from Tore Urnes from Oslo, Norway [CC BY 2.0 (https://creativecommons.org/licenses/by/2.0)]

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

Crypto Prophecy provides a useful tool to identify oversold and overbought coins -
https://mymark.mx/CryptoProphecy

February 27, 2019