The first part of July has been good. I took a hit, but bounced back. The S&P 500 index is up 3.55% as of the close of business July 15. I’m up 7.05% as of the same time (including after hours fluctuations). I pegged to the S&P 500 index, but occasionally I’ll do a day trade or two when it looks easy.
I am going to stay pegged to the S&P and resist straying too far from it. I have built up positions in Europe & Japan again, which I will probably keep unless some other major event happens. I don’t see anything stopping this market from climbing again. I think we set a new high before the end of the month, and finish the year around 4-8% like I said at the start of the year. The next pull back will be FED induced with a rate hike, or possibly some bond market defaults with the oil drillers with the price drop of oil. My start of the year assessment hasn’t changed, although I don’t think yield is being sought as much as growth. The strong dollar is still a concern.
I will go back into healthcare and small caps, but in smaller positions and keep an eye out for good entry points into strong stocks. I’m considering Ambarella & Aetna, and right now. Missed the boat on Apple & Palo Alto Networks last Thursday & Tuesday, clear buy signal… but I missed it. I’ll keep my eye out for the usual suspects, the strong blue chips, and if there’s a pull back, I’ll buy try building positions a little bit at a time.
My positions are:
HEDJ (currency hedged Europe ETF): 14.2%
DXJ (currency hedged Japan ETF): 12.7%
HACK (cyber security ETF): 2%
CI (Cigna): 2% – for a trade, I think they catch a take over bid
TTM (Tata motors): 1.9% – for a trade, waiting for a bounce
WFC (Wells Fargo): 1.8% – core position building
HUM (Humana): 1.2% – for a trade, I think the deal with Aetna goes through
BAC (Bank of America): 1.1% – started a position recently, had a great quarter. A laggard that could catch up, and I like regression to the mean.
INDA (India ETF): 1% – Just to have a position
Very small call positions in GM, TWTR, TTM
Short LPNT (Lifepoint): -4.2% – have had this trade on for a while. Its just running too hot. Not looking for a huge drop, but a retracement at least.