RF's Financial News

RF's Financial News

Sunday, July 6, 2014

This Week in Barrons - 7-6-2014

This Week in Barrons – 7-6-2014


                











The HERE and NOW…

Most people live in a very ‘Now-focused’ world.  From alarm clocks in the morning to the 11 o’clock news in the evening – working virtually around the clock, being on call all weekend, and answering texts and emails 24/7.  This is our current measure of progress.  There’s a certain irony in the fact that the largest selling drugs are for: Hypertension, Antacids, Anti-depressants, and Erectile Dysfunction.  Evidently we've progressed ourselves into a nation of worried, upset, depressed, and libido challenged individuals.

Factually we do live in a ‘dot com’ era where everything spins at incredible speed, but basic elements are falling through the cracks.  For example – I worry:
-       About a recent study showing that children are now only capable of mental focus for 30 seconds at a time – a period remarkably similar to a TV commercial.
-       About a recent poll showing that 63% of those polled thought that Belgium was a craft beer.
-       About us continuously spending less time on ‘RE-search’ and more time on ‘ME-search’.
-       About our Federal Reserve telling us that they’re worried about ‘DE-flation’ – while anyone who’s shopped for food, gasoline, insurance, education, or clothes in the past decade continues to be worry about ‘IN-flation’ and making ends meet.
-       About Wal-Mart being the nations top employer.  Because I'm not sure how many people are worried that the velocity of money has crashed, or that J.P. Morgan has a derivative book of $70 TRILLION – which is 5 times more than the entire United States GDP.
-       About Oracle thinking that it was a good investment to use $21 Billion of their own dollars to buy back their own stock – and then proceeded to badly miss earnings.

I worry that we’re spending too much time in the ‘here and now’ and not enough time analyzing the future impacts of some of our decisions:  For example – I worry:
-       About California, where the biggest shortage in hospitals (right now) is the lack of language ‘translators’ to deal with the flood of Spanish speaking patients.  Many hospitals are seeing more than 1,000 additional patients per week (due to Obamacare) and over 70% do not speak English.
-       About more states pushing to legalize marijuana, presumably for tax income purposes.  Do we really think that a 6-month legalization period in Colorado is enough time from which to set a benchmark?
-       About our coup in the Ukraine failing, but succeeding in turning their gas supplies off and bankrupting the country. 

One small news item did prove to me that others are ‘aware’ of our ‘sound-byte’ culture, is that an Israeli lawyer has asked the U.S. courts to shut down Iran's Internet DNS addresses.  This particular law firm finds Iranian assets, seizes them, and then distributes the money to the victims of Iranian terror groups.  They have sued to have the Internet domain name managers shut down the destination ".ir" (which is Iran).  If Iran’s goes Internet dark, it would make it very hard for any news to be released.  Could this be the prelude to Iran being attacked, and someone not wanting pictures and videos to be seen? 

I understand why so many of us live in the ‘here and now’, and are only focused on the next day.  Things are moving incredibly fast, and it takes valuable time to take a break from the ‘here and now’ and look at the other side of the picture.  Unfortunately, it’s only by estimating and planning that you get a real view of what really matters.  On this holiday weekend, give yourself a break from the Matrix, because there’s nothing more interesting than the truth that surrounds you.


The Market...

Monday was the end of the 2nd quarter.  This is when stockbrokers like to ‘Paint the Tape’ (otherwise known as ‘Window Dressing’).  This is where brokers buy the winning stocks (right before quarter-end) in order to look like they were geniuses for being in on all of that quarter’s winners.  That way when the quarterly statements go out, everyone looks and says: "Wow look at this, my guy had XYZ stock, and it did great!"  In addition to the ‘Window Dressing’ activity, the FED was more than happy to help the cause by doing the biggest reverse-repo in history of over $340B.  On Tuesday that giant repo unwound and the animal spirits were unleashed within the trading pits.  Between the ‘First of the Month’ money and all those billions rushing back into banks from the FED, they were able to put together a nice 120 point DOW gain.

The middle of the week put us into ‘pause mode’ because with the holiday shortened week – the initial jobless claims and the non-farm payrolls reports would come out on Thursday rather than Friday.  People were worried that if the jobs report came out too strong, then the markets would sell-off because it could signal oncoming FED rate hikes.  On the other hand, a bad jobs number might be rewarded with more buying as ‘just maybe’ the FED would end the taper.  This market likes free FED money a lot more than it likes a solidly functioning and growing economy.  Good news often causes the market to panic because they fret over the FED's pulling the punch bowl away, while bad news often causes a sigh of relief.  It’s upside down, but it’s reality.

While the market was anticipating Thursday’s jobs numbers – it appears that one of our predictions (concerning the status of the U.S. dollar as the global reserve currency) is beginning to come true.  Last week, the Chief Executive of France’s largest oil company, Christophe de Margerie said he sees no reason for oil purchases to be made in U.S. dollars – adding that it makes sense to expand the use of other currencies in transactions, especially outside the U.S.  “Nothing prevents anyone from paying for oil in euros,” de Margerie told journalists at the Cercle des Economistes conference in Aix-en-Provence, France.  “The price of a barrel of oil is quoted in dollars.  A refinery can take that price and using the euro-dollar exchange rate on any given day, and agree to make the payment in euros.”  What sparked this debate is the $8.97 billion fine that the U.S. slapped on the French bank BNP Paribas (BNP).  French Finance Minister Michel Sapin said this week that the BNP fine raises questions about the reach of U.S. laws because the bank’s transactions were not illegal in Europe.  Sapin said European countries should look for ways to use the euro more frequently and that he will raise the matter with fellow euro-area finance ministers when they meet in Brussels on July 7.  “Shouldn’t the euro be more important in the global economy?” Sapin asked journalists in Paris.  “We have to consider the weight of the dollar and the consequences of pricing things in dollars when it means that American law applies outside the U.S.”

Then on Thursday the jobs numbers were released, and outwardly it was a good report – showing a gain of 288K jobs and the unemployment rate dropping from 6.3% to 6.1%.  As we looked inside the jobs number we found:
-       U.S. Birth/Death Model added 121 thousand (42%) of those jobs.
-       The labor force participation rate remained low at just 62.8%.  A reading this low has not been seen since the 70’s.
-       The number of people holding part time jobs for "economic" reasons increased by a whopping 275K.  What are economic reasons?  First - potentially those are the only jobs that they can find.  And second - companies are changing full-time workers into part-time workers to avoid Obamacare.
-       Hourly earnings increased by 0.2%, but I’m not sure we can call that a win given we’re moving a lot of people from a 40-hour to a 29.5-hour workweek.
-       The unemployment rate fell from 6.3 to 6.1% - due to a staggering number of people leaving the workforce.
-       And, for the 5th month in a row the ‘job-LESS’ number came in higher than anticipated.

When analyzing the unemployed – it appears that 40% of unemployed workers (4.6M) are Millennials (according to the Georgetown University Center on Education and the Workforce).  The millennial unemployment percentage is greater than Generation X (37% = 4.2M) and Baby Boomers (23% = 2.5M).  And a staggering 2 Million of the 4.6M unemployed millennials are termed 'Long-Term Unemployed'.

This Jobs number did put the market in a Holiday mood and it responded by hitting yet another all-time record high – with the DOW topping 17,000.  But (as it has done lately) it has gone a bit too far too fast.  So I'm in the camp that suggests we'll probably see a bit of ‘backing and filling’ this week as the market digests its gains.  So don't be surprised to see some red on the indexes this week.

While the biggest mistake someone could have made this year was not being ‘IN’ the markets – honestly, this continued rise (on low volume) to all-time highs day after day is simply unsustainable.  A pause (or shallow pull back) is likely and I think it might hit this week.  Soon we're going to enter earnings season, where companies will be reporting their second quarter results, and you can bet there will be a lot of pops and drops to celebrate.


Tips:

This past week I have been very diligent about putting a summary of all of my daily trades out in Twitter and in StockTwits between 4:15 and 4:30 EDT each day. 

A fairly easy method of making money in an ‘up market’ is to SELL premium.  Often that is accomplished by selling a Put Credit Spread (PCS’s) on a particular stock or index.  A couple thoughts along those lines are as follows:
-       SELLING premium is a good thing, as 80% of all options sold expire worthless – and you would like to be on the ‘SELLER’ of those trades. 
-       Often you can sell ‘Call Credit Spreads’ when a stock appears to be falling or ‘topping’ and sell ‘Put Credit Spreads’ when a stock is rising or putting in a ‘floor’. 
-       A Put Credit Spread is where you sell a PUT Option at a given strike price, and buy another PUT option at a lessor strike price as protection.  If the stock continues to rise – you will gain the difference between the premium you sold and the option you purchased for protection.
-       Buying the ‘protection PUT option’ somewhat slims your profits, but guarantees a much smaller loss if you’re wrong about the direction of the stock. 
-       For example: Cheniere Energy (LNG) – appears to be firing on all cylinders with its stock more than doubling over the past 12 months.  It is currently trading at $72.52 per share.  If you believe that it will continue along the same direction – then you can SELL the weekly $70 PUT option for $0.27 and BUY the $65 PUT option for $0.05 (as protection against any bad news).  As long as the stock remains above $70 / share this week, you would ‘pocket’ the $0.22 / share at the end of the week.

We had a tremendous week last week, and this week I’m looking for the markets to (in general) trade sideways and down.  Therefore, selling premium on Call Credit Spreads (CCS’s) should be on the menu.  I’m still holding:
-       COST – Bought: October $115 Calls
-       AAPL – Bought: October $85 Calls
-       FEYE – Sold: July Weekly $41 CC’s (Cov. Calls), & $36 / 33 PCS
-       MNKD – Sold: July Weekly $11 CC’s, & $9 / 7 PCS
-       BWLD – Sold: July Monthly $150 / $140 PCS
-       GOOGL – Sold: July Monthly $535 / 530 PCS
-       HD – Bought: September $77.50 & $85 Calls
-       KO – Bought: November $39, $40, $44, and $45 Calls
-       NUGT – Sold: July Weekly $49 CC’s, & $42.5 / $39.5 PCS
-       SHPG – Sold: July Monthly $205 / $200 PCS
-       TLT – Bought: September $110 & $116 Calls
-       USO – Bought: January 2015 $41 Calls
-       VIPS – Sold: July Monthly $160 / $150 PCS
-       WDC – Bought: July $90 Calls
-       WWAV – Bought: October $30 & $37.5 Calls
-       X – Bought: July $24 Calls

Reviewing our Past Week’s Performance:
-       Mannkind Pharmaceutical (MNKD) – continues to be manipulated and pinned at exactly $10 on Friday – so we are resigned to just collecting weekly premium by SELLING the Covered Calls (CC’s) and Put Credit Spreads (PCS’s) until they announce their major partnership / merger in 4 to 6 weeks.
-       FireEye (FEYE) – continues to be a real horse – even after pulling back slightly this week.  It has its sights on $40+ and in the meantime we’re collecting premium by SELLING CC’s and PCS’s.
-       Durata Therapeutics (DRTX) – closed at $17.90 on Friday – allowing us to pocket the entire premium that we sold.  We’re continuing to hold onto our position a little while longer and SELL CC’s and PCS’s.
-       Cheniere Energy (LNG) – is continuing to look like the poster child for a rising stock chart.  Nothing much to do with LNG other than ‘sit on our hands’ and SELL CC’s and PCS’s.
-       My energy portfolio (comprised mostly of small energy companies) continues to perform nicely (see below):

My current short-term holds (returning > 15.7% for June) are:
-       DRTX (Drug) – in @ $13.67 – (currently $17.90),         32% increase / 2 mo.
-       FEYE (Tech) – in @ $28.05 – (currently $38.95),          39% increase / 2 mo.
-       LNG (Energy) – in @ $57.40 – (currently $72.52),        26% increase / 1.5 mo.
-       MNKD (Drug) – in @ $6.35 – (currently $10.00),           57% increase
o   (Covered Call Premium / Income Plays in all of the above…)
-       AKRX – In @ $30.96 – (currently $33.91),                      10% increase / 10 days
-       ASX (Tech) – in @ $5.81 (currently $6.87),                     18% increase / 1.5 mo.
-       BAS (Energy) – in @ $25.94 (currently $28.95),            11% increase / 2 wk.
-       BRS (Energy) – In @ $75.07 (currently $80.26)                        7% increase / 1 wk.
-       FET (Energy) – in @ $30.53 (currently $36.33),            19% increase / 1.5 mo.
-       GTAT (Tech) – in @ $18.09 (currently $19.55),             9% increase / 10 days
-       HK (Energy) – in @ $5.25 – (currently $7.36),               40% increase / 1.5 mo.
-       IDTI (Tech) – in @ $15.03 – (currently $15.56),             4% increase / 1 wk.
-       KOG (Energy) – in @ $12.98 – (currently $14.36),        10% increase / 3 wk.
-       LSCC (Tech) – in @ $7.85 – (currently $8.50),              8% increase / 2 wk.
-       LSG (Gold) – in @ $0.92 – (currently $0.92),                 0% increase / 1 wk.
-       PQ (Energy) – in @ $5.87 – (currently $7.43),               27% increase / 1.5 mo.
-       PVA (Energy) – in @ $14.57 – (currently $16.34),         12% increase / 1.5 mo.
-       RFMD (Tech) – in @ $7.96 – (currently $9.88),                         24% increase / 1.5 mo.
-       SLV (Silver) – in @ $20.17 – (currently $20.29),            1% increase / 1 wk.
-       SPIL (Tech) – in @ 7.20 – (currently $8.59),                  19% increase / 1.5 mo.
-       SQBC (Retail) – in @ $13.81 – (currently $14.04),       1% decrease / 1 wk.
-       STIKL (Energy) – in @ 13.51 – (currently $14.07),        5% increase / 1 wk.
-       SIL (Silver) – in at 24.51 - (currently 14.39) – no stop,
-       GLD (ETF for Gold) – in at 158.28, (currently 127.02) – no stop ($1,320 per physical ounce), AND
-       SLV (ETF for Silver) – in at 28.3 (currently 20.29) – no stop ($21.18 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there!

Disclaimer:
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Sunday, June 29, 2014

This Week in Barrons - 6-29-2014

This Week in Barrons – 6-29-2014

Who let All these Sheeple into My room?

















You’ve heard the old adage: When a man with money meets a man with experience – the man with money ends up with experience – and the man with experience ends up with all the money.  The bad news is that first quarter GDP estimates (that were for +0.1% growth) were revised downward to a NEGATIVE 2.9% this week.  Yes, the U.S. economy SHRANK by 3% in the first quarter of 2014.  And this week, when the President addressed ‘The Sheeple’ (the J.Q. Publics of the world) – he blamed the ‘slight miss’ in the GDP number on – wait for it – ‘The Weather.’  Revisions of this magnitude are a way of ‘publishing reality’ after feeding ‘The Sheeple’ a load a crap.  This constant ‘blame it on the weather’ and the ‘data is noisy’ has caused me to re-examine my perspective on the economy.

-       Do I think the market is just a ‘Bit Frothy’, and I a little worried about a major correction? If so – then buy some protective PUT options and go on with my life.
-       Do I think that things are a little more severe, but not yet in the ‘Epic Chance of a Major Meltdown’ camp?  If so – then I should just cut my debt levels, save as much money as I can, and ‘ride it out’.
-       However, If I think that the ‘Big One’ is coming.  That is to say: I have examined the real numbers, the frauds, the manipulations, the market distortions, the debt levels, and have decided that a massive global currency and economic crash is pretty much ‘In the Cards’.  Then I asked myself: What should I invest in that will get me through those times?

We all need to take the time to try and decide for ourselves just where we sit concerning ‘the scope’ of our economic situation, but if I'm right:
-       There is going to be a currency crash.
-       The world will shun the dollar to the point it loses its reserve currency status.
-       And when the world no longer needs U.S. dollars to buy energy and to perform international trade, we (the U.S.) are in a heap of trouble.

Remember, hundreds of nations around the globe have tried to print their way out of trouble and into prosperity.  It has never worked.  So, why has the U.S. been able to print so much money and still ‘appear’ to be limping along?  Well, if you're a solitary country – not part of the global reserve standard – and you print money:
A.    You will distort your internal country’s values – which will cause inflation.
B.    You will be unable to value your exports efficiently – which will cause bondholders to go crazy (knowing more inflation is coming).
C.   You will shut down sovereign trade – which will cause you to ‘rinse ‘n repeat’ until your nation goes bankrupt.

The U.S. has held a very interesting position for the past 60 years.  Its currency has been ‘in demand’ globally due to its status as the world’s reserve currency.  Why is that important?  A global reserve currency is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves, and is the currency that is most commonly used in international transactions.  But in addition to that, the U.S. has held an even higher position due to a deal it made many years ago with the Saudi's and the OPEC nations.  The ‘petro-dollar’ deal guaranteed that oil from the Middle East would ONLY be sold on the world stage in U.S. dollars.

Every nation needs oil.  So when you have a ‘sweetheart deal’ that requires every nation to first obtain ‘U.S. dollars’ via foreign exchanges to buying oil – you have an ‘artificial’ demand for U.S. dollars that would NOT be there without the existing petro-dollar setup.  Therefore, the U.S. has been able to print dollars and export our ‘inflation’ around the world.  And the world has been forced to use our dollars if they want energy.

Well, ‘Times – They are a Changin’.  The world is tired of our constant printing and their austerity suffering, while we live ‘high on the hog’ printing dollars and running up trillions of dollars in debt.  The world is tired of being dollar slaves and yearns for currency freedom.  That means that one day (fairly soon) we’re going to see the Saudi's and OPEC openly declare to sell oil for alternative currencies such as the Yuan, Ruble, Euro, Peso, gold and silver.  The very minute that news hits the wires – no one will need to hold U.S. dollars any more.  The world will instantly flood the system with U.S. dollars, the dollar index will decline, and we will then become just another Argentina & Zimbabwe.

So, what do you do about it?  And perhaps more frightening is: how bad could it really get?  If you’re a hard-working individual, with a good to excellent middle class income and some ‘savings’ – then things are going to get ‘exponentially’ tougher.  I would expect gold first and silver second to increase in value enough to offset the crush of the dollar devaluation.  Last week I mentioned ‘good real estate’ and I should have qualified what I mean by ‘good’.   While it’s generally a great idea having a property and letting someone else pay for it – unfortunately in difficult financial times your ‘renters’ will often NOT be able to continue paying – and it’s incredibly difficult to evict tenants when they stop paying.

The two forms of real estate that I've found to be bullet proof are: (a) land that is rented by the U.S. government, and (b) land that is leased to farmers.  So, if we don’t collapse into total anarchy, and the basics of the infrastructure continue to function – then having a good stock of PHYSICAL gold and silver coins will help you immensely.  They've printed $29 Trillion to buy stocks, thus saving the rich from the embarrassment of losing money.  This time however, it's the printing that's CAUSING the problem.  When the collapse hits, printing more money won't fix it – only time and working through the fundamentals of a new economy will supply the solution.  If you believe that a NEGATIVE 2.9% GDP in the first quarter of 2014 was caused by ‘bad weather’, and there is (according to Ms. Yellen) ‘no inflation – just noisy data’ – then completely disregard all that I’ve said above – and by the way – ‘I have some land in Florida (and a bridge in New York) that I’d like to sell you.’


The Market:

Before I get into the market, I would strongly recommend that everyone sign up and read Michael Williams’ blog on a daily basis: http://marketpreview.silexx.com/.  How Michael can turn out (day after day) high quality information like this is just beyond me – congrats to him.

Last Sunday we suggested that the market may see a bit of red as they work off the previous week’s pop higher.  Well, that's exactly what happened – as the market sank on the week.

Factually:
-       Mortgage apps fell 1% last week, on the heels of the previous week’s 9% drop.
-       First quarter GDP came in at NEGATIVE 2.9%, the worst first quarter since 1958. Remember when I was skeptical of the Fed's cutting QE because for the first time in their history they'd be cutting a stimulus program in the face of weakness. Well, you can't get much weaker than -3%.  The good news is, with the horrific GDP data, there’s virtually no chance that the FED will raise rates this year.
-       President Obama is pushing for more sanctions against Russia.
-       Monsanto’s stock jumped $7 (not because of earnings, new R&D, or expansion) – but because they’re using ½ of their total market cap to BUY BACK their own stock.
-       In Venezuela the electricity has been drastically shut down.
-       Argentina has all but defaulted, and Putin is scheduled to go there in July.  Yet another potential member of the ‘Dump the U.S. Dollar’ Club.
-       Iraq and the Ukraine are still – well – Iraq and the Ukraine.

On Monday this week, we mark the end of the 2nd quarter of 2014.  I would expect some window dressing – meaning brokers buying the stocks that did well and selling the stocks that didn’t.  On Tuesday and Wednesday we should see the effects of some 'new money’ coming into stocks.  So I think we trade sideways to higher into Thursday’s initial jobless claims and non-farm payrolls reports.

Thus far they've been able to engineer a magical levitation of the markets in the face of everything that's going on.  I expect this to continue on into the mid-term elections in November – with a few 2% pullbacks sprinkled in for effect.  But remember that anything could be that proverbial ‘last snowflake’ that lands and causes the avalanche.  Just because they want it up, doesn't preclude the fact that something massive can go wrong.


Tips:

I’m getting better at announcing trades, but I really have a ways to go.  I make (roughly) 20 trades a day, and announcing them via Twitter and StockTwits is tougher than what I thought.  But, I am getting better. 

When I talk of ‘stock manipulation’ – there was nothing finer than the manipulation of MNKD stock following their receipt of FDA approval on Friday.  The FDA announced their approval with a ‘badly worded’ release at 3:28 pm on Friday.  With the wording of the release – the stock plunged from $10.50 to $8.20 in virtually 5 minutes – on volume (roughly) equivalent to Apple’s entire trading day!  Following that initial move downward, the stock miraculously moved back to $10 and then to $11 (with a re-worded FDA message) in after-hours action.  Allow me put forth a potential scenario: 
-       If you are the the CEO of MNKD, you need to make sure that your stock does NOT go ‘thru the roof’ upon FDA approval.  [Estimates were for MNKD to rise to between $16 (a 60% gain) to $48 (a 400% gain) per share upon FDA approval – and then result in a huge ‘sell the news’ collapse directly following the rise.]
-       Gains to these levels (if they held) would make partnerships and merger opportunities difficult, and stock ensuing collapse would make those same discussions problematic. 
-       At the same time, you need your stock to increase because your balance sheet is becoming ‘squeezes’ – and you do have ‘short-term cash’ obligations on the horizon. 
-       Now, hypothetically you could ‘work with’ the FDA on wording of their original announcement (in such a way) that would allow you to initiate a SALE of your own stock – starting the dominos to fall.
-       And once your stock hit a pre-arranged level ($8.20 for example), you again come in with a hint of a re-worded announcement and cash to buy the stock (at these reduced levels) – and thereby trigger the ensuing 25% increase from $8.20 to $10 per share before the close.
-       This would have limited your upside (and not priced you out of the partnership – merger market), and would have garnered you the quick $32M (16M shares * $2 per share increase from $8 to $10/share) that you (MNKD) needed for your cash obligations going forward.
-       BRILLIANT – simply a work of art!

This week I’m looking to SELL premium PCS (Put Credit Spread) on the following:
-       COST – weekly & daily squeeze = Directional, October $115 calls
-       AAPL – 15 min & 4 hr squeeze = Directional, October $85 calls
-       FEYE – hourly squeeze = Directional, July $37 calls, AND July (monthly) PCS $37 / 35 = $0.25/share
-       BWLD – weekly squeeze = July (monthly) PCS $150 / $140 = $0.50/share
-       CMG – hourly squeeze = July (weekly) PCS $577.50 / $572.50 = $0.52/share
-       GOOGL – hourly squeeze = July (weekly) PCS $577.50 / 572.50 = $0.65/share OR $575 / $570 = $0.45 OR $572.50 / $567.50 = $0.30/share
-       PCLN – 4 hour squeeze = July (weekly) PCS $1170 / 1162.50 = $0.65/share OR $1167.50 / 1160 = $0.57/share
-       TSLA – hourly squeeze = July (weekly) PCS $227.5 / 222.5 = $0.40/share
-       VIPS – 4 hour squeeze = July (weekly) PCS $180.00 / $175.00 = $0.40/share 

Reviewing our Past Week’s Performance:
-       Our directional Calls and our PCS (Put Credit Spreads) did very well indeed for us last week – and continue our assult on a 20% return à FOR THE MONTH!
-       Mannkind Pharmaceutical (MNKD) – will be interesting on Monday.  The Options market is telling us that it should settle around $14 per share. 
-       Durata Therapeutics (DRTX) – closed at $17.26 on Friday – allowing us to pocket the entire premium that we sold.  We’re continuing to hold onto our position a little while longer.
-       My energy portfolio (comprised mostly of small energy companies) continues to improve nicely (see below):

My current short-term holds (returning > 15.7% for June) are:
-       **DRTX (Drug) – in @ $13.67 – (currently $17.26),      27% increase
-       **MNKD – in @ $6.35 – (currently $11.00),                    73% increase
o   (Continued Income Plays here…)
-       AKRX – In @ $30.96 – (currently $31.71),                      2% increase / 3 days
-       AMKR (Energy) – In @ $9.43 (currently $10.88)            15% increase / mo.
-       ASX (Tech) – in @ $5.81 (currently $6.51),                     12% increase / mo.
-       BAS (Energy) – in @ $25.94 (currently $28.32),            9% increase / wk.
-       ETP (Energy) – in @ $57.60 (currently $57.61),                        0% increase / 2 days
-       FET (Energy) – in @ $30.53 (currently $36.26),            19% increase / mo.
-       GTAT (Tech) – in @ $18.09 (currently $18.2),                1% increase / 2 days
-       HK (Energy) – in @ $5.25 – (currently $7.14),               36% increase / mo.
-       KOG (Energy) – in @ $12.98 – (currently $14.45),        11% increase / 2-wk.
-       LNG (Energy) – in @ $57.40 – (currently $69.95),        22% increase / mo.
-       PQ (Energy) – in @ $5.87 – (currently $7.50),               28% increase / mo.
-       **PVA (Energy) – in @ $14.57 – (currently $16.71),      15% increase / mo.
-       **RFMD (Tech) – in @ $7.96 – (currently $9.36),          18% increase / mo.
-       SPIL (Tech) – in @ 7.20 – (currently $8.12),                  12% increase / mo.
-       UIHC (Insurance) – in @ $16.81 – (currently $16.61),             1% decrease / mo.
-       VTNR (Energy) – in @ 7.35 – (currently $9.95),             35% increase / mo.
-       SIL (Silver) – in at 24.51 - (currently 14.02) – no stop,
-       GLD (ETF for Gold) – in at 158.28, (currently 126.75) – no stop ($1,316 per physical ounce), AND
-       SLV (ETF for Silver) – in at 28.3 (currently 20.16) – no stop ($20.96 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there!

Disclaimer:
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Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

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PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

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