Archive for February, 2017

February 28, 2017… And the Buy Goes On.

Tuesday, February 28th, 2017

Market close February 28, 2017…

SPY ended the month at $236.55 per share, while its 200-day simple Moving Average closed the month at $218.01 per share. That means SPY is still on a Buy Signal.

On December 31, 2016 your 4905 shares of SPY were worth $1,096,415. These shares are now worth $ 1,160,425. So for the two months of 1917 your total profit on SPY, including dividends, is $64,010 or
$32,000 per month. Who said investing in Index ETFs is boring?

The question is where to from here? The model says you should stay invested until a sell is generated at a month end. The model has kept you invested for the past 229 days and given you 17.25% on your investment ( including dividends ).

Think you can do better ? or….afraid to lose what you have?

The following is not advice. My thinking for myself ( very dangerous ) is that the market is due for a pause within the context of the existing buy signal. I have sold everything and I am redeploying my money in 100 shares of each of the following ETFs…SPY, VTI, ITA, KBE, XLF ( 200 shares ), QQQ. At the same time I have written 1 put contract ( 100 shares per contract ), except VTI.for assignment to me at a price which approximates the 50 day moving average price of each ETF purchased. This will allow me to stay invested, receive a premium for each put contract and maybe get assigned the shares at a price that will allow me to average down the price of my long positions.

Richard Maurice Gore

Why I Can’t Support Donald Trump

Saturday, February 11th, 2017

February 11, 2017

I’ve posted quite a few Trump related comments on Facebook, and the response from Trump supporters has been to accuse me of nonobjectivity, hating Trump, of being a leftist, of being unable to face Hillary’s loss etc. Now, they are saying I should support the President no matter what.

After a while, Facebook comments are difficult to resurrect. In the spirit of ” I told you so “, I believe the time has come for me to go on the record and accept the advice of my old mentor….verba volant, scriptet manent ( sic )….words fly away, written words remain where they land.

I’ve never been against any office holder as much as I have been against President Trump. And, I’ve wondered why. Underlying everything, is his history of arrogance, of belittling people, of self- promotion beyond bragging, of his gargantuan need for acclaim and attentionfame. OK..so I don’t like him personally.

But that doesn’t mean I can’t support him to accomplish goals for America. I would just draw a line in the sand when it comes to allowing him to delegitimize other branches of our government as a means to a position beyond Presiden t …as Emperor Trump.

Here is my Facebook Post of February 10, 2017 defending my objectivity.

Donald Trump has been caught in so many lies which offer compelling evidence of a delusional personality, I find it quite difficult to understand how anyone can believe any Trump utterance.

I do not hate Trump. I subscribe to many of his ideas which I find preferable to those of the Democrats.

Neither am I a leftist. I would describe myself as a grass roots capitalist. I haven’t been paid for an hour of work in more than 10 years and I didn’t work more than 20 hours per week in the 30 years prior to that. In other words, mostly my money works for me and I fit the classic description of a capitalist.

That I have had formal training as an overseas lending officer for a large international bank, allows me, I hope, to consider Trump in an objective and dispassionate way. In my judgment,(opinion), President Trump is missing the third ” C ” of Capital, Capacity, and Character, and that means I would not want him as a business partner or consider lending him money without a strong third party guarantee.

As for me being accused of being a socialist-leftist, I would submit as evidence to the contrary, a two-year 24/7 struggle with the Teamsters where I needed to walk a fine line between my ” Commissar ” at the National Labor Relations Board and invitations to meet informally at a bar on Westchester Avenue in the east Bronx, for proposals which I could consider in the context of ” a short life “. Long story short, we won, and the Union filed to decertify its representation of its bargaining unit. We paid the strikers a fair separation benefit and hired the permanent replacements.

However, I will admit my grass roots capitalist self-description should be modified to the extent that it includes ” leave no deserving man behind as in 100% tuition refund plan for all full-time employees at my company

I know Donald Trump. I’ve seen him before, mostly on film and in history books. His character attributes
are irrepressible, inimitable and bigger than life. But trust me, he is not George Washington, Abe Lincoln, Harry Truman, or Ronald Reagan.

All that being said, I would have voted for him if I didn’t consider him delusional to an unhealthy
degree with a propensity for reactive impulsiveness. To me that spells danger.

All too bad for the struggle we may need to go through,

Richard Maurice Gore

SPY STILL ON ” BUY “

Wednesday, February 1st, 2017

February 1, 2017

SPY ended January 2017 at $227.24 while SPYs 200 day moving closing price average is $215.76.

This means SPY remains on a BUY signal.

It also means on the 4905 shares you held on December 31, 2016 you now have an unrealized profit of $18.198 plus dividends.

For me, it means I am free to invest more in SPY or any other ETF or stock.

For you, it means you have the same freedom, providing you do the underlying work that gives you confidence to invest in a specific ETF or Equity situation.

Looking over my shoulder, my largest ETF position is in IWM , the Russell 2000, smaller cap stocks because it is held that small caps should do better in a de-regulated enviornment and because most of these stocks do business primarily in the USA and do not have the currency translation problems of internationaly active USA stocks

Looking over my shoulder, my largest equity position is in AMZN which seems to be in the process of crushing brick and mortar retailers. I have written put contracts which obligate me to purchase 100 shares at $760 if AMZN is below that price on February 24 and 100 shares at $800 if AMZN is below $800 on February 24. AMZN closed yesterday at $822.52.

Interest rates favor Equities and the only possible cloud on the horizon would be the uncertainty relating to the market’s assessment of the Trump Presidency.

Richard Maurice Gore