HI Financial Services Mid-Week 05-20-2014

HI Financial Services Mid-Week 05-20-2014

HI Financial Services
Mid-Week 05-20-2014

“The sky is falling, the sky is falling.”  – Chicken Little

 What has been happening
so far this week?

          We had a continuation of the slow bullish grind on Monday and
then Tuesday the bottom fell out.  There
are no economic reports, no real overseas news, but did we have two fed
presidents speak?  Of course we have two
opinions from a hawkish and a doveish member of the fed presidents.  Conflicting but the reality is what it
is.  Tapering is slowing and probably
should end quicker if possible.  Rising
interest rates have to occur if we want to fight deflation and
stagflation.  So why the big drop
today?  Low volume due to the holiday weekend
coming up and uneducated traders in the market. The last time interest rates
were raised it helped both the market and the economy.  Raising interest rates helps attract overseas
investors to our market, corrects bubbles in the economy, profits the financial
industry, and somewhat strengthens the dollar compared to overseas
currencies.  Yes there are contrary
arguments but I like history on my side.

      

Where will our market
end this week?

          With such a down Tuesday and with big money out of the
market I believe we will not recover from the drop today.  The week will continue to trade on light
volume and probably end down for the week.
Housing reports at the end of the week might be a catalyst but I wouldn’t
count on it.   It wouldn’t surprise me if this is the buying
opportunity going into the end of the month.
I do not see a sell in May go away scenario and riding it out with short
calls is not a bad idea.   

 

 

DJIA– We are at a pivot
point.  We have crossovers on both the
RSI and the MACD.  We don’t have a
confirmation on the 5 and 20 day EMA but we are close.  Most importantly we broke and closed below
the 50 SMA

 

SPX – The S&P 500 is
looking better than the DJIA.  Only the
MACD has bearish crossovers and we bounced off the 50 day SMA.  I would look for a bounce higher from here

 

COMP –Still in no man’s
land right now stuck between the 50 day and 200 day SMA.  We have choppy highs and higher lows.  I can’t guess about the future. 

Where Will the SPX end May
2014?

05-20-2014

I am sticking too close
to 17,000 on the DOW and at or slightly higher than 1700 on S&P

05-13-2014

I would expect us to be
at 17,000 on the DOW and above 1900 on S&P

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:
SPLA, DRYS, HD, INTU, MOT,
TJX, CRM

Wed:
HPQ, HRL, LOW, TGT, TIF

Thur:
ARO, BKE, DLTR, GME, GPS, ROST,
SMRT, SHLD,

Fri              FL

  

Econ Reports

Tues:  

Wed:  MBA, FOMC
Minutes,

Thur: Initial Claims, Continuing
Claims, Existing Homes Sales, Leading Indicators

Fri:
New Homes Sales,  

 

Int’l:

Tues –   JP: BOJ
Announcement, All Industry Index, Merchandise trade,

Wed –   GB:
BOE Minutes, CN: PMI Flash Mfg Index

Thurs – DE:FR:EMU: PMI Composite,
GB: GDP, CBI Industry Trends Survey  

Friday – DE: GDP

Sunday –  

 

How I am looking to
trade?

 

I am in collars for 50%
of my portfolio after earnings on some stocks my collars reached expiration.  I am considering adding covered calls to feel
more comfortable getting thru this week and to lose value over the 3 day
holiday weekend. 

 

Collar: BIDU, MS, LNCO,
TSLA, FB, SBUX, BBY

 

Covered Calls: ½ AAPL,
D, DIS, VZ, SNDK

 

Stock only
positions:  AAPL, F, NVDA, V, DIS, MEI,
SNDK

 

Protective Puts: F, NVDA,
LNCO, ZION

 

Questions???

 

www.myhurleyinvestment.com = Blogsite

customerservice@hurleyinvestments.com = Email

 

Article Links can be followed
by being a twitter follower

 

Health
craze whipping up this food’s price

: http://www.cnbc.com/id/101685306

 

Busting 3 big age-based investing myths

http://www.cnbc.com/id/101646104

Cramer:
Once bitten, has America become twice shy?

http://www.cnbc.com/id/101673552

 

Investing
in US tech? This index is the way to go

http://www.cnbc.com/id/101674015

 

What to Do When Stocks
Hit the Bargain Rack

http://click.moneymorning.com//v/CA/oF8/qyg/ABnXOQ/AAFuMQ/AA/AA/kbDb

 

Goldman
Sachs: This bull market has longer to run

http://www.cnbc.com/id/101670665

  • Social Links:

Leave a Reply