Last week was a solid one for global markets, with the S&P 500 up 1.74% and the NASDAQ soaring 2.28%. The MCSI Emerging Markets Index joined the party, rising 1.44%.
You had some big winners in your Bull Market Alert portfolio with Melco Crown (MPEL) soaring 7.48%; Delphi Automotive PLC (DLPH) jumping 6.84%; and the ProShares Ultra MSCI Japan (EZJ) up 3.60%.
As a result, it was a very busy week, as the spate of Special Alerts I issued confirms.
First, you booked 19.51% gains by selling half of your position in the ProShares Ultra MSCI Japan (EZJ) exchange-traded fund.
Second, you sold your related WisdomTree Japan Hedged Equity (DXJ) August 2013 $45 call options for a gain of 114.29% — your fourth set of triple-digit percentage gains of 2013.
Third, the Delphi (DLPH) August 2013 $42.50 call options I recommended last week soared 59.64% in just four days. So, I recommended that you sell half of your options to lock in these quick, big double-digit percentage gains.
This week’s Bull Market Alert recommendation is an option play on your existing holding in Melco Crown (MPEL).
Recall that last week, I recommended you buy a position in MPEL, which promptly soared 7.48%. With Macau growing to five-and-a-half times the size of the Las Vegas Strip, MPEL is the best “pure play” to capture the profit opportunities in “Asia’s Las Vegas.”
At the time of my original recommendation, I held off on recommending MPEL options. But with MPEL breaking out to new 52-week highs last week, I am recommending that you buy the July $25 options today (MPEL130720C00025000) in advance of the company’s earnings announcement on May 8.
Portfolio Update
Bank of Ireland (IRE) gained 1.68% last week. Bank of Ireland published a progress report on April 17 that disclosed more progress towards its goal of restoring profitability. IRE reported gains in three of its primary recovery goals — improving net interest margin, controlling costs and working through overdue loans in its residential and small business loan books. IRE’s recovery continues, and IRE continues to be a BUY.
ProShares Ultra MSCI Japan (EZJ) added 3.60%. EZJ sustained its winning ways last week to hit a new 52-week high of $85.00. Results of the Japanese Ministry of Economy, Industry and Trade’s factory output survey are due out Tuesday morning. Forecasts show an expected rise in output for the fourth consecutive month. This is a key metric in the Japanese recovery as the falling yen positively affects export profitability, and exports are dependent upon robust factory production to produce adequate product supply. EZJ is a BUY.
Sony Corporation (SNE) dipped 1.02% over the past five trading days. Sony came in eighth place in a worldwide survey looking for the “most meaningful brands.” French marketing giant Havas Media recently released results of its survey, looking at the opinions of 50,000 participants in 14 countries for 300 global brands. Capturing hearts and minds is a critical pursuit for the success of any company, and it appears that Sony products are still very popular among the world’s consumers. SNE reports earnings on May 9, before markets open. SNE is a BUY.
Melco Crown Entertainment Limited (MPEL) jumped 7.48% in your portfolio as your well-timed purchase of MPEL soared to a new 52-week high last week. In addition to this good news, Wynn Macau Ltd.’s winning earnings report last week boasted a 19% increase in first-quarter profits — which adds a positive spin to MPEL’s earnings outlook. MPEL will report earnings on May 8 before markets open. MPEL is a BUY.
Delphi Automotive (DLPH), last week’s other big winning recommendation, followed MPEL’s lead to close 6.84% higher for its opening week among your holdings. And, DLPH enjoyed yet another win last Thursday as it captured the 2013 Gold Award at the Edison Awards “Annual Gala” for its first-in-class “Connected Car” product. This product allows drivers to track, locate and monitor systems aboard their equipped vehicle using their smartphone. DLPH reports earnings on Wednesday before markets open. DLPH is a BUY.
