A successful short term trade on $EHTH

Another week of consistent recovery for the US stock market as well as for many others around the world. I remain cautious and still hold onto some hedges because this sudden reversal cannot be fully trusted and due to it being reportedly fueled by a short squeeze for the most part.

While I like to make investments for the long term, I do occasionally perform short term trades and this week I have managed to pull two off! One of them could be traded on eToro and related to eHealth (ticker: $EHTH ). What happened is the classic short selling amplified by the media, with a stock which was trading at 136$ until last week and dropping to below 100$ on Wednesday. I took the opportunity, bought at 99$ and exited at 114$ over the course of two days ! I believe the stock has the potential to go even higher and if I was a more aggressive investor, I would hold on to part of it, but decided to lock in the profit this week.

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There were two more positions we closed this week, on two of the food-related stocks owned in my eToro portfolio, both with a 5% gain, Conagra Foods (ticker: $CAG ) and General Mills (ticker: $GIS ). These were both sold with the automatic sell function available on eToro. I am ready to get back into these two but when any my positions goes above a 10% gain, I have a take profit ready at 5% in order not to give up all the profit if the stock price goes down passed that mark. I then set up a price alert to be notified if the price goes up again past the sell price and re-evaluate my view on that particular stock.

I am also very satisfied with this week’s recovery in my $WFC position, with a 26% jump in just 4 trading days.

So now I am 49% in cash on my eToro portfolio and continue to look for more investment opportunities. One from my watchlist I am prepared to jump into is $BABA , but that will depend on how next week goes.

Enjoy the long weekend and for those who celebrate it, have a happy Easter !

 

Beating the #market

Another week in red has gone by, with the three major US stock market indices losing between 1.7 and 2.6%.

Perhaps the most significant development, however, relates to the price of #oil which has finally seen a spike from the lows of the beginning of the week. This is thanks to the expectation that the major producers may soon agree to cut production which should better align supply with the reduced demand. I have tried to play this with a very short term trade but didn’t actually succeed as I sold my $USO position too quickly with a marginal loss. It has taught me another lesson about how pointless short term trades can be, at least for me, as I am fundamentally a long term investor. Always invest in what you understand ! I did however benefit from a 12% gain in my Occidental (ticker $OXY ) position.

This week I have started a new long position in ConAgra Foods (ticker is $CAG ): I don’t expect it to work wonders, as it is a value stock, but to actually provide a single to low teens return within the next year or so and therefore some stability to my portfolio. I have bought it on Tuesday and have already achieved a 4.28% gain. It also pays a 2.8% dividend and the next quarterly ex-dividend date is expected in late April. I felt the timing was right as they have increased their guidance and now see FY20 adjusted EPS earnings per share above the high end of $2 to $2.07.

A similar investment made earlier in March is in General Mills (ticker is $GIS ) which this week has gained 9.4% !

Here is a simple graph created with Yahoo Finance to compare these two stocks with the three major US indices for this past week. How did your portfolio fare compared to them?

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I currently have 14 long positions in my eToro portfolio and 9 out of 14 have beaten the US market this past week. Ultimately, beating the market is the most important goal.

Be an active investor and invest responsibly.

Have a great weekend, all !

The #US journey towards #energy independence in 2 graphs | #ActiveInvesting