HI Financial Services Commentary 03-09-2016
What do you do when you don’t understand what’s going on in today’s stock market?
Get out of Dodge and most likely book a loss !!!!!!!!!!!!!!!!!!!!!!!
Trade Small – ie… use less contracts / $$$$
Look at the different scenarios as they could play out with your portfolio
Make sure you have protection and wait it out
Look for opportunities
SO….. Remember I trade with my wife’s risk tolerance
I built up a portfolio spread trading in a ridiculously bullish market from 2006 to the end of 2007
AND then I went strictly to collar trades
THEN I use the big credits on the short call to create spread trades within the collar (S/S, extra-long positions, Ratios)
Worried about stocks? Don’t watch so much: Buffett
If investors are worried about their retirement savings after watching 2016’s wild market fluctuations, Warren Buffett has some advice.
“I would tell them don’t watch the market closely,” the Oracle of Omaha said. The billionaire and philanthropist who has amassed a fortune of more than $64 billion tells CNBC’s “On The Money” that buy-and-hold is the best strategy.
“The money is made in investments by investing,” Buffett said in a recent interview, “and by owning good companies for long periods of time. If they buy good companies, buy them over time, they’re going to do fine 10, 20, 30 years from now.”
Despite a whipsaw market unnerved by everything from China’s economy to the Federal Reserve’s interest rate policy warns individual investors against making a lot of stock moves with their portfolio.
“If they’re trying to buy and sell stocks, and worry when they go down a little bit … and think they should maybe they should sell them when the go up, they’re not going to have very good results,” Buffett said.
Now in his 51st year of leading Omaha-based conglomerate Berkshire Hathaway, Buffett is frequently ranked among the world’s wealthiest men, which include Microsoft’s founder Bill Gates and Mexican entrepreneur Carlos Slim Helu.
Berkshire Hathaway owns more than 80 businesses, including household staples like Dairy Queen, GEICO, Fruit of the Loom and Benjamin Moore. The conglomerate also has major stakes in giants likeIBM, American Express, Coca-Cola and Kraft Heinz.
In looking for companies to invest in, Buffet used the following example: “If you had a chance to buy into a good company in your hometown … and you knew it was a good company and knew good people were running it, and you bought in at a fair price, you wouldn’t want to get a quote every day.”
Instead of frequently checking a stock’s price, “you’d look to the earnings and dividends over the years as determining whether you made a good investment or not. And that’s what people should do with stocks.”
Publicly traded shares are “little pieces of businesses. And the businesses are generally pretty darn good.”
Time is usually your friend
Market down ytd and DIS, AAPL, BIDU, NVDA, F have been added to accounts
What’s happening this week and why?
Consumer Credit 10.5B vs est 16.5 B
Wholesale Inventories .3 vs est -0.2
Uncertainty on the ECB and more stimulus !!!
Uncertainty in China??? Import and Exports were horrible
Little to no US economic reports
In fact the political delegates for the primaries are running the show
Where will our market end this week?
DJIA – Technically Bullish but we are running up against the 200 SMA
SPX – Technically Bullish and running up against the 200 SMA
COMP – Technically Bullish and in no man’s land for the next leg up or down
Where Will the SPX end March 2016?
What is on tap for the rest of the week?=
Tues: DKS, DRYS, LINE, PNY, ZAGG
Wed: EXPR, SQ
Thur: DG, LOCO, INP, MED, SMRT, MTN
Wed: MBA, Wholesale Inventory, Crude
Thur: Initial, Continuing Claims, Treasury Budget
Fri: Import, Export
Tues – DE: Industrial Production, EMU: GDP
Wed – CN: CPI, PPI
Thursday – FR: Industrial Production
Sunday – CN: Industrial Production, Retail Sales, JP: Machine Orders
How I am looking to trade?
AAPL shares with April 110 short call
BIDU 155/160 or 165 bull put and 200 Jun Short Calls
DIS with 95 and/or 92.50 long puts
NFLX, F, ZION, SNDK, NVDA, Shares
FB, V in collars
BABA I have 90 March Long puts and $110 April short calls
www.myhurleyinvestment.com = Blogsite
Ford: Trying To Be Big In This Growth Market
The Potential Disney Stock Catalyst Nobody Saw Coming
How To Short Apple Acceptably
Lynn Tilton’s $2.5B credit funds have new manager
Ford: This Key Growth Driver Will Lead To Better Times
Today’s Apple Products Are Absurd
Facebook Vs. The World