The market did not disappoint this week. We saw wild swings on light volume. All of the major indices tanked big time on Thursday and pretty much kept going on Friday. The stock market had its first down week in something like seven weeks. Bond yield rates rose and gold and other precious metals blew up through recent levels of resistance on Thursday. Gold and the other precious metals gave a little of that back on Friday. Fortunately, the IAG position in the portfolio made it an up week for the portfolio as IAG got a huge push up from the big jump in gold prices.
All of this market volatility did bring the prices of stocks down enough to for them to merit the attention of watching them with my model. I DO NOT have any new buy recommendations as of yet though. The market volatility also did not throw a sell flag up on any of the portfolio positions either. Staples got close but held its support at the $16.80 level. Given the overall volatility of the market and the fact the retailers Walmart and Macy's dragged retailers in general down when they missed earnings expectation, I'm inclined to give Staples a little leeway. In fact, I added 100 shares to the portfolio on the Thursday dip. For those of you that don't know, Staples is the second biggest online retailer behind Amazon.
In other news for stocks in the portfolio, DUK went ex-dividend last week. The portfolio will pick $78.00 on the 15th of September. Unfortunately, a couple brokerage houses downgraded AA during the last week citing the glut of aluminum in the world markets at present. I'm still a big fan of AA just for the way the company is run. And while it seems the US economy is stuck in neutral, there appears to be some life starting show it's head in the world economy particularly Europe.
Given the highs of the last few months, I am not going to chase trendy stocks. Last week only pulled markets about 3% off of their recent highs and I think there maybe a little more downside pressure until after Labor Day when everyone gets back from vacation and volume picks up again. Expecting more downside pressure means I need to find more potential candidates to add to the portfolio. Interestingly enough, given the looming increase in interest rates, I like regional banks at this point and am keeping my eye on a couple of them. One stock I am particularly keen on is Huntington Bancshares (HBAN). I'm not ready to add it to the portfolio yet but I am watching the bank.
SP 500 6 Month Daily Chart
07 June 13 - 1000 shrs IAG @ $5.29 per share. (BUY)
13 June 13 - 500 shrs AA @ $8.20 per share. (BUY)
21 June 13 - 100 shrs DUK @ $65.58 per share. (BUY)
28 June 13 - 200 shrs GE @ $23.19 per share. (BUY)
28 June 13 - IAG traded ex-dividend $0.125 per share
11 July 13 - 100 shrs SPLS @ $16.67 per share (BUY)
11 July 13 - IAG div. disbursement, $0.125 per share, $125 (INCOME)
18 July 13 - 700 shrs WEN @ $6.81 per share (BUY)
19 July 13 - 100 shrs SPLS @ $16.38 per share (BUY)
26 July 13 - 500 shrs ENTG @ $9.53 per share (BUY )
26 July 13 - 500 shrs XRX @ $9.69 per share (BUY)
06 August 13 - 500 shrs ENTG @ $9.23 per share (SOLD)
06 August 13 - 100 shrs XRX @ $9.97 per share (BUY)
15 August 13 - 100 shrs SPLS @ $16.73 per share (BUY)
Magic Money Machine Portfolio (16 August 2013)
Cash: $ 13,682.00
1000 shares IAG- $ 6.31 $ 6,310.00
500 shares AA - $ 8.12 $ 4,060.00
100 shares DUK - $ 67.05 $ 6,705.00
200 shares GE - $23.95 $ 4,790.00
300 shares SPLS - $16.84 $ 5,052.00
700 shares WEN - $7.78 $ 5,446.00
600 shares XRX - $10.30 $ 6,180.00
Total $ 52,226.00
+ 4.452%
Pending AA Dividend Disbursement. $ 15.00
Pending DUK Dividend Disbursement. $ 78.00
Effective Total $ 52,319.00
+ 4.638%
Please note that the account will not receive the AA Dividend until August 25th at which time we can add it back into the cash balance.
Please note that the account will not receive the DUK Dividend until September 17th at which time we can add it back into the cash balance.
Stop-loss list
IAG - $3.90
AA - $ 7.70 (updated 09 August 2013)
DUK - $ 65.00 (updated 09 August 2013)
GE - $22.75
SPLS - $16.70 (updated 16 August 2013)
WEN - $5.50
XRX - $8.90
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