HI Financial Services Mid-Week 05-07-2014

HI Financial Services Mid-Week 05-07-2014

HI Financial Services
Mid-Week 05-07-2014

The mental aspect is one of the most overlooked and
underappreciated facets of trading. It is also one of the most important.
Success in the 
stock market, as well as in business, is largely dependent on a person’s
psychological toughness and their ability to “roll with the punches.” Sometimes
you just need to sit back, reflect, and clear your head in order to get back
into the game.

 

Trade Update

 UA trade being closed tomorrow for our target return

 XOM trade being closed tomorrow for our target return


 

What has been happening
so far this week?

         
 The market had a great bullish day and then followed up with an even
worse bearish day.  If you ask me the
market is in limbo and has no idea which direction it wants to go over
summer.  I was recently asked what about
the sell in May and go away theory?  I
don’t see that in 2014 because there are no profits to go away with in
May.   I think we are still in a range
with no catalyst to push us to new all-time highs.  This is the last big week of S&P 500
earnings but I do not see anything that moves the market. 

 

Where will our market
end this week?

         
I am expecting a flat week.  Too much
going on to sustain a significant movement for this week.  Ukraine is still a concern with what Putin
will do.  There isn’t much in the way of
earnings or economic reports.  I think we
will probably have another up day and a down day to sell the risk away over the
weekend. Nobody really seems to want to hold equities over the weekend.

 

DJIA– WE are just
bouncing along the RSI and the 50 day SMA. 
We are creating a pennant with a cap at the 16,000 ark and higher
lows.  Nice to have the 50 SMA acting as
support.


 

SPX – The S&P 500
also is holding the RSI median line and the 50 day SMA.


 

COMP –I would still call
the Nasdaq in no man’s land right now stuck between the 50 day and 200 day
SMA. 

 

Where Will the SPX end May
2014?

05-07-2014

I would expect a flat
month and to be in the range of 1850 to 1900. 
This means I can make my money with Covered calls, Credit spreads and
calendars

 

What is on tap for the
rest of the week?=

Earnings:

Tues:
         DTLK, FEYE, FSLR, MOS, NUS,
WFM, DIS

Wed:
         CAR, CHK, DVN, DUK, BID,SCTY,
TSLA, Z, RIG

Thur:
        CBS, MNST, PCLN, WEN, NVDA

Fri

  

Econ Reports

Tues:  Trade
Balance

Wed:  MBA, Productivity,
Consumer Credit

Thur: Initial Claims, Continuing
Claims

Fri:
    Jolts, Wholesale Inventories

 

Int’l:

Tues –   FRE:EMU:
 PMI Composite

Wed
–   FR:  Industrial Prodcution, Merchandise Trade

Thurs – CN: Merchandise
Trade, CPI, PPI

Friday –

Sunday –  

 

How I am looking to
trade?

GO collar trade GO!!!

 

BIDU – It doesn’t make
sense but it’s earnings say it is going higher.  Let’s protect the
position thru the summer when volatility should get higher or people sell in
May then go away. 

Stock ownership @ $
127.55 cost basis

What is the risk in the
trade? EVERY PENNY = $127.55

To protect the stock I
bought a July 155 Long put for $10.296

New cost basis? 127.55 +
10.30(rounded)= $137.85

Risk in trade? = Right
to sell @ $155 and cost basis of $137.85 = -$17.15 RISK FREE

To lower the cost of my
protection I sold a September 185 short call for a credit of $5.87849

Overall risk = Max
Profit = 17.15 + Credit of $5.88 = $23.03

 

I also do this for other
positions as well in the portfolio

DIS average stock price
$70.40 with the right to sell @ $80 per share

V average stock price
$193.03 with the right to sell @ $220 per share

ZION protected to protect
almost a 50% gain on the stock with the right to sell @ $31

 

 

 

Questions???

 

 

 

www.myhurleyinvestment.com = Blogsite

customerservice@hurleyinvestments.com = Email

 

Article Links can be
followed by being a twitter follower

 

US economy: Blame misaligned policies

http://www.cnbc.com/id/101640543

 

How the ground is shifting in the ETF industry

http://www.cnbc.com/id/101642817

 

Naming a Trust as Your IRA Beneficiary

http://thetrustadvisor.com/news/ira-beneficiary

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