Saturday, June 16, 2018: Trade Wars, Portfolio Strategies, Random Stuff




The Red Doesn’t Bother Me

DOW -84.83  •  NASDAQ -14.66  •  SP500 -2.83  •  NYSE -37.31




The major market indexes finished in the red on Friday. This was due to the so-called official announcement by the Trump Administration that we would be applying stiff tariffs on goods coming from China. About 25% on $50 billion dollars of goods. China vowed to do the same, and both sides starting these tariffs sometime in July 2018.

Of course, markets downtrending into the red is typically perceived as bad. But, we’ve been hovering not too far from all-time highs, so dips should be considered buying opportunities, to buy new stocks or build up on existing positions.

This has always been a tough concept for many investors, to appreciate the downturns as buying opportunities, and to have the cash ready to buy. Many times we get caught up in the uptrending of a stock and we try to buy into the uptrend hoping it’ll go even higher.

Well, it depends… on the stock’s performance and its patterns over the course of 3-5 years.

If you are a short-term trader, highly volatile stocks are the way to go. But you have to buy into the valleys and not the peaks, and you have to see some signals that an uptrend is about to occur. Studying the MACD indicator on technical charts is one way to determine a rebound.

When the overall markets tank, this is a good opportunity to keep watching and waiting for the markets to start bouncing back. It’s tricky because the markets can continue to fall, so you have to definitely begin to see signs of a rebound.




Portfolio Strategies

1. Figure out a way to live within your means, and not from paycheck to paycheck.

2. You need to put away at least 15-20% of your net income each month.

3. The best advice I have heard (especially for young people) is to open a Roth IRA account with a major discount brokerage like E*trade, Fidelity or TD Ameritrade. You can trade as often as you like within a Roth IRA and not get dinged with capital gains tax. But you’ll still be charged with commissions.

4. Put your extra money into that Roth IRA each month.

5. It’s best to wait until you’ve amassed some cash until buying a stock.

6. For day traders (and I don’t recommend you be one, since only 5% truly make it) the required starting point is to maintain 25K in your account.

7. I think 25K is a good starting point if you want to invest in 5 stocks at around 5K for each position.

8. Study, research, and begin reading all you can about the stock market and corporations. The great billionaire Warren Buffett reads 5 hours a day.

9. Investing in great companies with great dividends is a good strategy, because you’ll get something back each quarter, thus helping you build your cash.

10. DRIP a few of your stocks. This program allows you to take the dividends to buy more of the stock in fractions, further building your position in that stock. This is excellent for young people who have years ahead of them to slowly accumulate the wealth.

Weekend Winners

I present to you the winners that prevailed on Friday, even though the markets ended in the red.

AT&T (T)

AT&T’s stock is called a widow-and-orphan stock, which means the dividends are good and the overall stability of the stock is good too.

Recently, T was given the go ahead by a judge to acquire/merge with Time Warner. After this announcement earlier in the week, the stock plummeted, but bounced back and is back on track to trend upward.

It might be a good opportunity to invest in T at this point. My current position with T is up 3.76% since buying my position in mid-May 2018. I also bought shares of T for my parents and that position is up 2%, purchased near the end of May 2018.

Overall Trend: Neutral
Analyst Predictions: Moderate Buy
Portfolio Grader: D

finviz dynamic chart for  T
FedEx (FDX)

FedEx is a great company with sound fundamentals and above average treatment and compensation for their employees. Even though there is stiff competition in the shipping business, FedEx is on the verge of an uptrend, judging by the 6 month technical chart. MACD signals look good right now, and the stock has been slowly creeping upward after suffering a huge drop back in January 2018 due to the market correction which affected the majority of stocks.

I think FDX should surpass that point in which it dipped back in January sometime soon. My position is -3.09% right now because I bought in just before the dip, but the company offers decent dividends and I’m holding on for the long term at this point.

Overall Trend: Bullish
Analyst Predictions: Strong Buy
Portfolio Grader: C

finviz dynamic chart for  FDX
Shopify (SHOP)

Shopify has been the big surprise this year, and currently is my top performing stock in the portfolio, at 97.58% profit.

There is no dividend, but the performance of the stock has been stellar, even back in 2017. Holding long on this one.

Overall Trend: Very Bullish
Analyst Predictions: Moderate Buy
Portfolio Grader: B

finviz dynamic chart for  SHOP

About Naysayers and Detractors

Just something that is non-investing related.

I have suffered through a lot of setbacks in my Life. I’ve been laid off a few times in my Life, as a Records Management Senior Specialist during the times of the Savings & Loan crises and scandals. I was laid off as a Messenger for an Insurance company early on. And I was laid off as a Loan Processor for a Mortgage company that wanted me to work overtime and warned me against picking up my kids when it was time to pick them up from daycare. Many times I’ve been rejected trying to look for a job as a computer programmer after finishing my degree in Computer Science.

Back when I was at the Savings & Loan I was accused of being the token affirmative action employee by whites who thought I just got the job because of the color of my skin.

And even as a musician, I’ve been fired from bands that were popular, and in which I have helped made popular. I was even fired from a latin jazz group 3 times and rehired 3 times. After the 4th time being asked back I said no way.

Anyway, though I may have found some success being an investor and trader, and also continuing to work as a freelance musician, I have suffered a lot of setbacks.

The point is to be resilient. Don’t give up. Keep pushing forward and continue to progress and stay positive in whatever you do.

And that is the message I am simply trying to get across.

This is the Renegade Mobile Trader signing off for the weekend.

Take care, everyone!

Disclaimer: The content provided here is for information and entertainment purposes only. It is not intended as an offer or solicitation to purchase any investment. And this material should not be taken as investment advice, since investors’ needs and strategies may vary. Investing in equities is subject to extreme volatility.
Trade at your own risk.

More Investing Thoughts

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Carlos Rull

Carlos Rull is a musician living in the San Diego area. His interests include Yoga, Eastern Philosophy, Zen Buddhism, and Gardening. He plays drums, piano, and composes New Age & Ambient music, and his albums are available on iTunes and Amazon.com.

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