TIB: Today I Bought (and Sold) - An Investors Journal #57 - Oil, Gold, Bitcoin, US Dollar

Cyclone Debbie smashes into North Queensland and stocks need protecting. The Bitcoin rollercoaster keeps rolling along. US Dollar seems to find its feet again.

Bought

Northern Petroleum plc (NOP.L): Oil Producer. I had a pending order outstanding which was triggered to add to my small positions. See TIB17 for the first purchase and rationale for little oil.

Sold

Evolution Mining (EVO.AX): Australian Gold Producer. Signal came in from research house to close the trade just as I was reading an announcement from the company about closing down the mine ahead of Cyclone Debbie which was bearing down on the Far North Queensland Coast.

Prudence wins 1.7% profit in one day.

http://www.abc.net.au/news/2017-03-28/cyclone-debbie--space-stations-capture-incredible-images/8392232

I was also watching US Dollar changes and felt less need for this gold hedge. I will review the status as the impact of the cyclone is assessed and/or will look to other gold plays. While US Dollar did move, the gold price went down only $3.

Covered Calls

Apple (AAPL): I already hold this stock. Price ($140.88) needs to move 2.8% to pass the 145 strike calls by April 21, 2017. Return will be 0.5% for 3 weeks. Capital gain will add 2.8% if exercised. I must say I was not expecting Apple share price to move up 2.07% to $143.80 and to make an all time high in one session. It did.

Cryptocurency

Bitcoin: I trailed stop loss behind each bar on the 4 hour chart and was taken out at $1,040 for a $70 per Bitcoin profit (7.3%). The snippet shows the order entry, the stop loss changes and the exit (in reverse order).

That makes up for the Friday Blues trade last week. I placed another pending order on the 4 hour chart. Pending order is the solid line and the stop loss is the dotted line. If it triggers and holds the level, this will be a new swing low. What I like in the shape of the chart is the last high was a higher high. Maybe price is finding its new equilibrium.

The trade was triggered in early morning trade (my time).

Currency Trades

US Dollar went into a more normal pattern. Business TV (I watch Bloomberg and CNBC) was filled with Federal Reserve Board Members talking - they seem to be on a mission to remind the markets what Janet Yellen said last week. "On course for two more rate hikes in 2017 provided there are no surprises in the data"

NZDUSD short. I scaled in my positions. Price has been cycling along a short term downtrend line. My first trade a week ago was on confirming the reversal on the touch of the trend line. That trend line was tested again two days ago and my scaled in trade is on confirmation of that reversal. I am happy to scale in as I had only risked 0.25% of my account on the first trade.

USDSEK long. I scaled in my positions. This chart looks a little different.

The overall trend is upwards (the green trend line from the weekly). The last run-up did not make a higher high and price has tried twice now to break through to make a lower low but there is resistance in the way (the green dotted line where price is now comes from the weekly charts). Technically this means that the trade is in a triangle = not a good place to trade because it indicates the market is not clear whether it is going up or going down. I am comforted by the weekly trend being an uptrend. I did like the low test bar testing the weekly level yesterday which is also an important Fibonacci level (0.786 - see the numbers in the rainbow)

USDCAD long trade I opened last week is now profitable. I will be watching this closely as the rising oil price will push the CAD higher. Oil price is being affected by important supply disruptions in Libya.

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. I do participate in an investing group - some of the ideas flow from there. Bitcoin trading remains cavalier.

Images: I own the rights to use and edit the Buy Sell image. The cyclone image comes from ABC - it is in the linked article. All other images are created using my various trading and charting platforms. They are all my own work

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

March 28, 2017