Since our first trade about a month ago on April 10, our model 00,000 portfolio is up over 10% – 8.3% on closed trades and 2.5% on open positions. Overall, the return on risk has been 54%, meaning that only a fraction of the capital in the portfolio has been employed to generate this return.
After a nasty drop from $35 to 7.50, CLF has been rebounding since it announced earnings in late April. Since then, the stock has made a pair of higher highs and higher lows, which is a bullish sign.
Since a few days of upward price moment on its earnings report, Pepsi has been consolidating for the last couple of weeks. It is currently trading at a resistance level of about $84.
We are going to place a relatively aggressive trade on PEP today in anticipation of a breakout above resistance.
On April 10, we placed an order for an iron condor on IOC. While we ended up holding the stock through earnings, the profitability range on this trade was so broad that a 25% increase in the stock over the last few days had no negative effect on our position.
On April 16, we initiated a longer-term trend trade on JNJ. Since then, the stock continued its stead uptrend, to the point where we have more than doubled our initial position.
On May 2, we placed an order on AWAY, contingent on it breaking through a price threshold. Yesterday, AWAY reached our entry target, and the order filled as follows:
Randgold Resources has reached our first downside target of $70, as noted when we opened our position on May 2. However, there may still be more downside to come.
Since our opening trade placed on April 22, HBI did turn upwards and reach our price target, albeit at a slower pace than we expected. While the technicals on the stock are not at all bearish, as the current consolidation phase could form a base to propel it to a new high, we are going to close out the trade for a 78% profit and have the proceeds available for better opportunities.
After a steep drop starting at the beginning of February, Caterpillar put in a bottom around April 20, after which it has made a couple of higher highs, sandwiching a lower low.
Discover Financial is also pulling back after breaking resistance and making a new high. We expect DFS to bounce up to reach a new high, or at the very least, test its old high.