"THAT'S JUST MY OPINION" - VOL. 20
It was a banner year! The S&P's rose 31.9%. The DOW rose 26.5%. The NASDAQ rose 38.3%.
I know your heads are a bit fuzzy today, so you may have to read this blog more than twice for it to sink in!
I'm going to go over investments that will enable you to top 2013! We are in a sweet spot that I have not seen in the 44 years I have been trading! What do I mean? Long the correct stocks and short the treasury bond market. I will get to those trades later but first I have to rant!
The main stream media is starting to make me ill! I will guarantee to all of you that you will hear the following. "Well that's great that the market went up but the middle class did not participate and become 30% richer than they were in 2012. Only the wealthy got rich." - REALLY. Tell that to my wife, who is a professor at a university. Tell that to my son that is a regional sales manager for a high profile tennis company. Tell that to all the teachers in the great USA, and nurses that work long hours and have TIAA-CREF accounts and are 30% wealthier than in 2012! Do I need to go on?
Now, listen up all of you that are 45 years and younger - If you believe that you will receive a social security check upon retirement - you must be living in Colorado!!!! You need to take charge of your money and you need to start now!!! Take 10% of what you earn a year and invest in the market with either mutual funds or a reputable money manager. You have 20 or more years before you retire. Do you know where the DOW was 20 years ago? Try 3,775.88!!!!!! Yesterday it closed at 16,576.66!!!!! How's that for a return on your money!!!!!
Let's get back to making money in 2014! Certain stocks in the stock market are poised for major gains in the next two years! Why do I say that? Let's apply logic here - if you own stocks that announced big dividend increases and stock buybacks, those are the stocks that are going to rally! Why you ask? When stocks buy back their shares that creates less shares outstanding. So what you say! I'll tell you so what -if those companies are able to increase profit margins with less shares outstanding - it does not take a rocket scientist to figure out that the stock price will appreciate!
Do not fall asleep on me now or turn me off and watch ancient aliens or DIY - pay attention - this could be the start of you accumulating money for your retirement - That's important!
In my last blog, I told you that if you have US treasury bonds in your portfolio, you will lose money for the next 2 years - at least! However, I have good news for you. You can make money having stocks and at the same time take advantage of interest rates going up - increasing your percentage of return!
How do I take advantage of interest rates going higher? Managed futures, especially with (CTA'S) or commodity trading advisers. I can hear you scratching your head from here!! What is he talking about?
I will concentrate on the stock side of your portfolio, however I have the man on the bond side you need to talk with to see if that side is right for you! It costs nothing to call and ask that question. His name is Steven Hansen at Foremost Trading. Steven has over 30 years experience in this investing space and specializes in building managed futures portfolio's for high net worth individuals, pension funds and corporations. There is an opportunity for the smaller investor as some of the account minimums can be as low as $10,000 to $20,000. Steven can be reached at 888-818-0880 Ext. 536 or at shansen@foremosttrading.com
Full disclosure - I make nothing on this recommendation - period!!! He knows how to make money for you folks and that's all I care about - your success!
Remember, I told you if you are 45 or younger do not count on social security - try this fact - 10,000 baby boomers will turn 65 today and about 10,000 more will cross that threshold every day for the next 19 years!!!!! Think about that - who is going to be left to pay for the ponzi scheme that is social security?
Stay awake people!!!
My son and my wife ended the year with a 32.457% profit for the year - not including dividends because stocks like ABBV do not have dividend re-investment programs.
Let's check out the last 2 days of the year trading wise!
DOW - up 98.25 or 0.60%
My stocks
ABT - down 0.04 cents or down 0.10%
ABBV - up .026 cents or up 0.49%
DIS - up $2.05 cents or up 2.76%
AIG - down 0.13 cents or down 0.25%
MU - up 0.23 cents or up 1.07%
C - down 0.15 cents or down 0.29%
NKE - up 0.48 cents or up 0.61%
So what did I trade this week?
I own DIS @ $50.29 - I sold covered calls for 03/22/2014 $77.50 @ $2.40
Basically selling DIS @ $79.40 for a 57.884% return in a little less than 1 year - not bad.
So what happened on this trade is I collected $240 per call.
So what is the worse case scenario?
On 03/22/2014 DIS closes over $77.50 and my stock gets called away and I keep the $240 per call.
Plus I get to keep the dividends between now and then.
Remember I wanted to buy JCI starting @ $50.23 down to $48.95. Well the low so far this week was $50.65. I want to own this stock so I will raise my buy points this week - I'll let you know!
SD I wanted to buy @ $5.75 down to $5.51 - the low for the week was $5.85 - so I took matters into my own hands and bought 40 calls 02/22/2014 $5 calls @ 0.95 cents a call - controlling 4000 shares.
The stock closed @ $6.07 - Thank you very much!!!!
I bought a bio-tech stock NSTG @ $17.09 and am looking to add on any break - I believe this is a possible take over target in the future!
I wanted to add to my position on ABT so I bought calls 02/22/2014 $37 calls @ $1.70 - I believe I will double my money on these calls!
I bought AMGN calls 02/22/2014 $100 calls @ $14.75 and looking to add more around $14.20 - Again I believe this is a double!
Ok , I have bored you enough!!
I just want to wish all of you a HAPPY NEW YEAR and a healthy one also!!!!
Thank You;
Len Dwelle
lendwelle@hotmail.com
Worst case scenario - DIS closes over $77.50 on the close of 03/22/2014 - my stock gets called away and I keep the $240 that I collected directly into my account creating a 57.884% return - in the mean time I will still collect it's dividends.
Remember on my last blog I wanted to buy JCI starting @ $50.23 down to $45.95.
The low so far this week is $50.65 - I'm going to raise my buy points later this week - I want this stock!
SD I wanted to buy starting @ $5.75 down to $5.51 - The low so far this week was $5.85.
So I took matters into my own hands and found a better way to buy this stock.
I bought 02/22/2014 $5.00 calls @ 0.95 cents - I bought 40 of those controlling 4000 shares - remember every call ca
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