Investment Idea Sharing May 16, 2015

Investment Idea Sharing – May 16, 2015 

See below for my personal stock market Buys or Sells for this week:

Buy Stock/ Fund: JDST                                         

Sell Stock/Fund: USO

Sell (to Open) Covered CALL: none

Buy (To Close) Covered Call: none             

Sell (to Open) Cash Secured PUT: none

Buy (to Close) Cash Secured PUT: none        

See the details on each of these transactions below the Weekly Summary table.

The world market indices were mixed this week.  The US indexes (Dow, S&P 500, NASDAQ) remain near their all time highs.  Here is an article about what was happening last week:  http://www.usatoday.com/story/money/markets/2015/05/15/stocks-friday/27362187/

Since mid 2014, Japan has decided to drive their Yen DOWN in value versus most of the other currencies of the world.  To 8 year lows v.s. the US Dollar, and 7 year highs v.s. the Euro, British Pound,  Australian Dollar and Chinese Yuan/Renminbi.  This should lower the price of Japanese products in the various countries they export to and in turn help Japanese exports to increase around the world.

Yen v.s. US Dollar:

http://www.xe.com/currencycharts/?from=USD&to=JPY&view=10Y

Yen v.s. Euro:

http://www.xe.com/currencycharts/?from=EUR&to=JPY&view=10Y

Yen v.s. Great Britain Pound:

http://www.xe.com/currencycharts/?from=GBP&to=JPY&view=10Y

Yen v.s. Australian Dollar:

http://www.xe.com/currencycharts/?from=AUD&to=JPY&view=10Y

Yen v.s. Chinese Yuan Renminbi:

http://www.xe.com/currencycharts/?from=CNY&to=JPY&view=10Y

I do not trade currencies, so I am trying to figure out how this knowledge can help me with my stock trading.  My first thought is that with the Yen very cheap v.s. the US Dollar, that would make Japanese stocks look cheap.  Which would lead investors to want to buy these “Cheap” Japanese stocks, which would cause the Japanese Nikkei (^N225) index to go up.  The Nikkei HAS gone up over 100% since Nov. 2012.

Yahoo 10 Year chart of ^N225:

http://finance.yahoo.com/echarts?s=%5EN225+Interactive#{"range":"10y"}

As a comparison, the US Dow Jones 30 Industrials is up only 50% since Nov 2012.

Yahoo 10 Year Chart of ^DJI:

http://finance.yahoo.com/echarts?s=%5EDJI+Interactive#{"range":"10y"}

The other big Asian industrial and financial powerhouse is China whose Shanghai Composite Index (SSE) also remains near its 7 year high, and has increased 100% from its 52 week low price.  I think the SSE is much more over priced than our US market indices.  Here is the Yahoo 10 year chart for the SSE composite index:

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{"range":"10y"}

These charts make me continue to believe that the markets have more downside probability and upside risk, so I am trying to increase my cash position in order to have cash to invest when any thing drops.

The price of oil went UP this week and ended at $59.69, up from $59.39 last week. 

See the 6 month Oil Price chart here:  http://futures.tradingcharts.com/chart/CL_/?anticache=1431799674

Weekly Summary Table of Worldwide Market Index Closing values:

 http://www.ultimatestockfinder.com/weekly_index_summary.GIF

Here are my Stock / Fund BUYs for This Week:

Symbol:  JDST

Buy Date:  5/15/2015

Buy Price:  $8

Target Sell Price: $8

This JDST was PUT to me at $8 from a PUT that I sold on April 21 for $.85.  I will check on selling a June 19 CALL next week at a strike of $8.05 for a premium of $0.50

Here are my Stock / Fund SELLs for This Week:

Stock Symbol: USO

Sell Date:  5/15/2015

Sell Price: $20

Buy Price: $20

Buy Date:  1/9/2015

This USO was PUT to me at $20 on January 9, 2015 from a PUT that I sold on January 2, 2015 for $0.57.  USO went down from January to April, but when it got back up near $20, I was able to sell this $20 CALL on April 7, 2015 for $0.60 that expired on May 15, 2015.  I have now earned $1.17 from the PUT/CALL premiums ($0.57 + $0.60=$1.17) from the two option premiums.  This is a 5.9% return on these USO shares from Jan. 9 to May 15.

Here are my Option (CALL or PUT) Sells/Buys for This Week:

Option: Sell to Open Covered CALL 

Stock Symbol:

Sell to Open Date:

Expiration Date: 

Strike Price:

Option Price:

Option: Sell to Open Covered CALL 

Stock Symbol:

Sell to Open Date:

Expiration Date: 

Strike Price:

Option Price:

Option: Sell to Open Covered CALL 

Stock Symbol:

Sell to Open Date:

Expiration Date: 

Strike Price:

Option Price:

Option: Buy to Close Covered CALL 

Stock Symbol:

Original Sell to Open Date:

Original Expiration Date: 

Buy to Close Date:

Strike Price:

Option Price:

Option: Sell to Open Cash Secured PUT 

Stock Symbol:  

Sell to Open Date:

Expiration Date:  

Strike Price:  

Option Price:

Option: Buy to Close Cash Secured PUT 

Stock Symbol:

Sell to Open Date:

Expiration Date: 

Strike Price: 

Option Price:

Visit www.ultimatestockfinder.com to download our Stock Evaluator and Mutual Fund Evaluator spreadsheets, read training articles and check out all our web links for investing information.

StockEvaluator ‘Short List’

Download ‘Short List’ here: http://www.ultimatestockfinder.com/stockevaluator_short_list.xls

‘Short List’ screens using 12 fundamental value limits that I want to see in a stock before considering it as a possible buy. 

View the Stock Evaluator ‘Short List’ screening criteria and target limit values here: http://www.ultimatestockfinder.com/short_list_12_criteria.JPG

Mutual Fund Evaluator ‘Short List’

Download ‘Short List’ here: http://www.ultimatestockfinder.com/mutualfundevaluator_short_list.xls

View the Mutual Fund Evaluator ‘Short List’ screening criteria and target limit values here:

http://www.ultimatestockfinder.com/mutualfund_short_list_criteria.JPG

Please remember to send me any other investing ideas, information or questions that you want to share with the group.

Thanks,

John D.

Disclosure: The author has no positions in any of the stocks or mutual funds mentioned in this article unless clearly stated above. We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article.  Please see our full legal disclaimer at:  http://www.ultimatestockfinder.com/stockevaluator_disclaimer.html

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