Malaysian markets open in positive territory. Panic over. Nibbling away at Spanish banks - did I pick well this time? Profits on Danish timber. And more nibbling at Bitcoin longs
Portfolio News
Emerging Markets Rout Malaysia's stock market opened on Monday after a week long closure that spanned the election that returned Mahathir to power. I noted last week that US markets smashed the iShares Malaysia ETF (EWM) even though the Malaysian market was closed. And I did suggest there was a tidy 6% discount. I was not wrong. The Malaysian market opened positively and the discount on EWM evaporated. Too bad I missed adding to my holding which returns to positive territory
This market action was enough to brighten up the emerging markets story though the pundits are now split as to whether there will be more of a rout or not. There is no doubt there is a growing debt challenge. Donald Trump's about turn on offering help to troubled Chinese telecom business, ZTE will also have helped the mood in favour of Emerging Markets I am leaving my investments to work off the GDP growth story for now. In one of my portfolios the best performing stock of the day was Malaysia and the worst was Indonesia following the terrorist attacks there - this is the world of Emerging Markets.
Let fundamentals play their tune - check this video.
Bought
Banco Bilbao Vizcaya Argentaria, S.A (BBVA.MC): Spanish Bank. European banks have been pushed down as interest rates have weakened over the last few weeks. I keep nibbling way at a few bank positions outside my main European holdings of leading German and Swiss banks. I added another small parcel of this Spanish/Argentinian bank to average down entry price.
Stepping back, my original thesis for investing in BBVA was to harness a Spain and an Argenitina growth story (see TIB182 for the original rationale). The price chart tells me that part of the story is not working the way I expected with the drop in price since the March 2018 highs exactly mirroring the decline in Argentina stock values.
The chart shows the US listing for BBVA (black bars) compared to the Global X Argentina ETF (ARGT) (orange line). This trade is now more of a Spain trade than a combined trade (unless of course one believes that the market over-reacted to the Argentina story). I do not as the value of Argentina profits is driven by the massive devaluation in the Argentina Peso.
Sold
Dalhoff Larsen & Horneman (DHL.CO) Danish Timber Merchant. I have had a profit target set on this stock for some time. That profit target was hit for 15% profit since March 2017. This stock idea came from my investing coach as a breakout trade. Price has been appreciably better than this closing level but has also traded into negative territory. I set a target at prior highs as I felt the trade was not going to produce asymmetric returns.
Cryptocurency
Bitcoin (BTCUSD): Price range for the day was $614 (6.9% of the high). The encouraging thing is daily volatility is reducing. Price action was challenging as price made a higher high and a lower low compared to the day before = an engulfing bar. The market does not know where it wants to go in "no mans land" I mentioned yesterday. Several days with the same sorts of lows does suggest there are buyers around the $8200 level
I did add a new IG Markets position at $8430 anticipating a 4 hour reversal - not smart trading but experience driven by the shape of the bar. I have put a target of $8997 on the last two contracts - just below the $9000 which was the last reversal low on the daily chart.
CryptoBots
Outsourced Bot One closed trade on this account - ENG (1.36% from February 14) replaced with an EOS trade (199 closed trades). Problem children was reduced by one with XMR falling below the 10% threshold (>10% down) - (12 coins) - ETH, ZEC, DASH, ADA, PPT, DGD, GAS, STRAT, NEO (-42%), ETC, QTUM, BTG. There remain a few trades that are worse than 40% down. ZEC has moved below 40% down to 32% down. NEO is now the worst.
Profit Trailer Bot Bot did go into Sell Only Mode during the day when Ethereum price rose hard. The bot closed 2 trades for an average profit of 1.67% and a positive 0.32% (was 0.29%) on the account (224 trades). (186)
The robot has made half a dozen trades on NULS in the last few days. The chart shows the ideal trading conditions for a robot - cycling along in a range without wild runs up or down.
Dollar Cost Average (DCA) list remains at 10 with 3 coins trading flat, 4 better and 3 worse. Only one coin is now below 30%.
I have not had time to make the cutover to the new strategy. Just squeezing out a few trades at a time to keep the momentum flowing.
New Trading Bot Positions improved to -25.3% (was -26.2%)
All coins traded level or a little better.
Currency Trades
Forex Robot did not close any trades and is trading at a negative equity level of 18.3% (lower than prior day's 20%).
Outsourced MAM account Actions to Wealth closed out 1 trade for 0.001% profits for the day.
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers
Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices
Bitcoin: Get started with mining Bitcoin for as little as $25 http://mymark.mx/Galaxy
May 14, 2018