0.4% return Sold 115 shares of Southwest Airlines (LUV) at $44.08/share.
Moving more money out of the market. I might get back in LUV before oil prices rise again in, what I expect to be, early 2016. LUV failed me this year after the government collusion investigation and price war rumors shot the price down.
27% return Sold 125 shares of General Electric (GE) at $28/share.
The recent GE hype has pushed the stock above $28/share. I’m afraid it will quickly fall back as it did earlier this year in April. I’m also focused on moving more money out of the market.
There’s one more payout coming in later this month, giving a total of 9 dividends worth $300. It’s been a good run with GE since 2013.
Domestic oil production continues to amaze me. There’s no wonder why prices have remained low.
At the beginning of the year, OPEC Secretary General, Abdalla Salem el-Badri, said prices would rise within a couple months. He was really betting on US production to stumble. Yesterday he spoke in Kuwait City:
“The market may be “balanced” in 2016 as demand grows and non-OPEC supply contracts”
OPEC isn’t giving up market share and it clearly shows with his passive-aggressive statements. I really doubt Abdalla believes demand will grow in 2016. They better put a hold on building more desert skyscrapers around the Persian Gulf; things could turn ugly by 2016.
0.5% return Sold 50 shares of General Electric (GE) at $25.77/share.
8% return Sold 240 shares of Rite Aid Corp. (RAD) at $8.88/share.
It looks like RAD might move down temporarily; I’ll catch it on the next dip.
Oil is back down below $50 a barrel for a third time this year. An inconceivable triple dip!
I’ve been woken up by the big drop in oil today; down nearly 8%.
This prompted me to take a look at the U.S. Energy Information Administration website and see how much oil we’re producing domestically. It’s shocking. With the rig count down and fracked wells still producing, April was another big month of oil flooding the market.
I plan on getting out of NOV and SBR if I get a chance to break-even because it looks like oil is headed lower.
This current drop in oil prices is a welcomed boost to LUV. The beatdown with price war rumors and recent government collusion investigation has finally ended.
Purchased 250 shares of Rite Aid Corp. (RAD) at $8.82/share. Total cost: $2,205.
I’m back for more RAD before earnings tomorrow. I’ve made plenty off RAD in the past, so this is a risk I’m willing to take! If there’s a price jump in the morning, I’m cashing this $2,000 out within the first 10 minutes of trading.
I’m holding $5,000 in RAD for long term. I see 2 possible happy futures for RAD: they’re bought by Walgreens/CVS or continue their aggressive growth.
3% return Sold 577 shares of Rite Aid Corp. (RAD) at $8.93/share.
I’ve been sporadically buying share of RAD the past couple months. I put $5,000 in yesterday and sold those shares for the $155 profit today.
I might try trading another $5,000 the day before (or the day of) RAD’s next quarterly earnings.
RAD, GE and SBR are the only thing keeping my current market position above water. LUV and IRWD have taken a turn for the worse and I’m losing nearly $1,000 on each of them. I would have thought the selloff of LUV would be over by now; but the airline bashing hasn’t ended yet. I’ve considered selling half of my shares for a loss, but Southwest Airlines is a great company with strong financials and is currently oversold on all the bad airline ‘price war’ news.
IRWD on the other hand is worrisome. Adding $300M worth of debt in unsecured notes has investors thinking the company is in a crunch for cash. IRWD has drastic swings and I can only hope there will be a rebound so I can finally get my $5,000 out.
-1.6% return Sold 710 shares of Ryerson Holding Corp. (RYI) at $7.13/share.
I realized I’ve been using Conditional Market Orders instead of Limit Orders every trade. I also learned how crazy bid/ask spreads can get on stocks.
The price of RYI was at $7.10/share. I set a conditional market order to buy RYI if it moved above $7.11/share; Scottrade bought my shares at $7.2290. The price moved up to $7.25/share. I then set another conditional order to sell if the price moved below $7.24/share. Scottrade sold mine at $7.1297/share.
A ten cent loss translated to a $85 loss and I’ve learned my lesson. The thin volume being traded on Ryerson pushed the bid/ask spread to a 15 cent gap at one point today.
The ScottStocks portfolio gained $500 today, so I took a risk and lost on RYI. I’m taking it easy and not chasing the $85 because there’s a good possibility I’ll lose more.
2% return Sold 70 shares of BP Prudhoe Bay Royalty Trust (BPT) at $69.96/share.
I’m taking it easy on BPT and getting out for now; it looks like I’ll be able to buy in at a lower price in a couple weeks. It hurts going from a $500 unrealized profit to nearly breaking even (without the $69 dividend), but WTI is moving this stock quickly downward…again.
The price of WTI has gone from $62/barrel to $59 this week. If oil begins moving down again, all my energy stock picks will be hurt: BPT , SBR , NOV , MDR. I’m countering this potential problem with LUV; which is up 3% today.
To celebrate the 100th ScottStocks blog post, I’d like to share some thoughts on the current state of the economy.
Yellen continues to ZIRP our economy into a happy dream world where bubbles and recessions don’t exist. Occasionally raising rates .01% would have helped the inevatible problem Yellen’s monetary policy will create. I wonder if she’s crazy enough to implement NIRP.
The economic effect of low oil prices is still unclear. The past few months in Houston have seen a depreciation in home values, stemming from decreased demand; which I’m guessing is the result of layoffs in the energy industry.
The fundamental life-force of any country’s economy is derived from the natural resources taken from the Earth. Oil is one of the most important resource we can pull out of the ground. Considering its importance and how 8 out of the top 10 largest companies in the world are Oil and Gas related, I can assume low oil prices will have a negative impact on the economy.
I think the perfect storm could be brewing if oil prices remain low and contribute to an economic slowdown this year. A guaranteed crisis would be created if the Fed raises rates, but I don’t see Yellen taking that action. I can see a rate raise happening as soon as Obama’s term is up.