Stocks popped nicely today after the Fed decided to keep buying bonds at the current level. I have used the opportunity to close all my equity positions. The gains this year have been good and I am not sure how I want to move forward. However, being all in cash as of this afternoon gives me a nice degree of freedom.
All our downside targets were hit, so I don’t intend to carry any futures positions into the weekend.
Equity Positions Closed on Wed: RGLD @53.60, BTG @2.55, AG @ 13.54, LRAXF @ .93, AUY @ 10.65 and SAND @ 5.80.
Also GLRE, @ 28.15, which if I recall correctly, holds a good sized position in Apple. Who wants a plastic phone in a weird color that takes your fingerprints when you reach to answer its ring? The Microsoft purchase of Nokia may have more to recommend it than I thought…
It’s nice to have the tea leaves confirmed so quickly; that way, there’s no time for second guessing.
Futures broke through 1350 overnight. Tension in Syria and fears of Fed easing are canceling out each other, so we may see a retest of the four week low at 1315.10. Of course, price direction can always change quickly.
As part of my all in move yesterday, I dumped most of my gold shares in the afternoon. Now, if we can just get through the jobs report and sail through any unforeseen events.
Gold futures are trying to go lower, so I have reversed my long position and am now short. I am looking for a break below the 1350 level.
Disclaimer: The EquityMan2013 portfolio is a real money portfolio. Tracking of its performance and comments on my buy/sell decisions is provided for the informational interest of family and friends. Others are welcome to follow. However, I am in no way qualified to offer investment advise, and nothing I say or that appears on ResourcefulStrategies should be construed as investment advise or a recommendation to buy/sell any of the securities I discuss.
I have added a new page for Utilities, and purchased shares in American Water Works (AWK) @ 39.47 and Kinder Morgan (KMI) @ 35.87, both of which I owned until recently. To make room for this page, I have shifted the China Stocks over to the Global page.
Fission Uranium (FCUUF) has agreed to acquire Alpha Minerals shares for $7.67 per Alpha share and to spin off its non-core assets. Fission will operate the project. The acquisition should make Fission a more attractive buy out candidate.
I bought Microsoft (MSFT) @ 31.88 last week, following the announcement that it would acquire Nokia. The $7B purchase price looks high until you realize that its just money parked overseas because of tax circumstances and there’s plenty more where that came from. The stock should recover from the haircut it took on the not very exciting news.
I also bought Royal Dutch Shell (RDS.A) @ 64.32, which has given up some ground recently. I no longer owned an oil major and picked Royal Dutch to fix the yield on my total portfolio of O&G stocks. I also added to my existing position in RGLD @ 56.35.
Other moves: I closed CLASF @ .40 and added to ROGFF @ .68. Colorado Resources had disappointing drill results for the second time this year. I stayed long gold futures all week, and mid-week the position was looking pretty bad, so I closed a few equity positions to give me a little margin flexibility. Then gold recovered most of its losses in the few seconds following the jobs report, so I was out of the woods. The positions closed were UOVEY @ 31.58, GS-B @ 23.99 , WBCO @ 13.72 , and IAALF @.055. These stocks were’t performing as well as the rest of the portfolio, which is why I sold them.
This morning I closed my RBOB futures position.
Two new Oil & Gas positions: Devon Energy (DVN) @56.77 and Arc Resources (AETUF) @23.91.