You have a very strong current Bull Market Alert portfolio.
Every one of your current Bull Market Alert positions has been profitable for 2013, with the exception Melco Crown (MPEL), which has been hit hard by the fallout surrounding all China-related stocks.
The strong current gains in your Bull Market Alert portfolio belie just how tough of a trading environment it has been since May 22 — the day the Fed announced the potential tapering of its bond purchases.
Some of the most robust hedge-fund strategies on the planet, with some of the longest and best track records, have been hit very, very hard.
Ray Dalio’s Bridgewater All Weather Fund was down roughly 6% through the end of June, after losing 5% in May. For the year, the fund is down 8%. And this is a fund that, on a dollar-for-dollar basis, has been the single best-performing large hedge fund of the past 20 years.
So, why all the financial bloodshed?
As a U.S. stock-focused investor, it has been easy to miss that virtually all asset classes across the board — U.S. Treasuries, high-yield bonds, emerging markets, gold and China — have suffered huge losses since late May.
I monitor 39 stock markets around the world on a daily basis. As of yesterday, only five global stock markets on the planet are up for 2013. The top three are Japan, the United States and Ireland — countries that together account for six out of eight of your current Bull Market Alert positions.
You now have two positions that boast over 20% gains — 24% in Delphi Automotive (DLPH) and 24% in Jazz Pharmaceuticals (JAZZ). You’ve also already booked double- and triple-digit percentage option gains in these positions.
This week, I am recommending that you raise your stops in Delphi Automotive (DLPH) to $50.59 and Jazz Pharmaceuticals (JAZZ) to $69.60 to lock in at least 20% gains in each of these stock positions.
With Asian markets down overnight, and a full portfolio of eight current Bull Market Alert recommendations, I am holding off on a new recommendation this week.
But keep an eye out for potential Special Alerts during the coming week to possibly lock in some big option gains in some of your current Bull Market Alert holdings.
Portfolio Update
Bank of Ireland (IRE) added 2.51% last week. IRE traded in a tight range near the $8.50 price level last week, after taking a firm bounce up from the 200-day moving average (MA) the week prior. Fairfax Financial Holdings Ltd. — one of the five major financing entities that bought a collective 34.9% stake in Bank of Ireland back in 2011 — holds a 9.9% stake in Bank of Ireland. Fairfax reported a gain of over 50% on its position since acquisition. If you bought Bank of Ireland (IRE) this year on Jan. 1, you are up 31.5%. Still under its 50-day MA, IRE remains a HOLD.
Melco Crown Entertainment Limited (MPEL) gained 0.67% over the previous holiday-shortened, four-day trading week. Macau’s Gaming Inspection and Coordination Bureau reported a 21% year-over-year gain in regional gambling revenues for June 2013 — the second-largest annual growth figure ever reported. The momentum reflected in these figures may calm investors’ fears over China’s tightening economy. MPEL is a HOLD.
Delphi Automotive (DLPH) continued its run straight up from its 50-day MA last week, adding 3.41% and marking a new 52-week high on Friday. DLPH is scheduled to report earnings on July 31, before markets open. Up 24.24% since my initial recommendation, DLPH is a BUY. Raise your stop to $50.59 to lock in at least 20% gains in the stock.
Stratasys Ltd. (SSYS) rocketed 8.57% last week, gaining 5% on Friday alone, on more than two times normal volume. SSYS appears poised to challenge its $95 all-time high in the coming weeks — a level SSYS nearly attained back in January. With SSYS scheduled to report earnings on Aug. 1, expect good news for Stratasys’ future in the booming 3D-printing space. SSYS is a BUY.
Jazz Pharmaceuticals (JAZZ) jumped 4.93% last week, hitting a new all-time high of $72.64. JAZZ is up 31% for 2013 and up 23.76% since my Bull Market Alert recommendation back in June. JAZZ is a BUY. Raise your stop to $69.60 to lock in at least a 20% gain.
Sony Corporation (SNE) completed the “hat trick” last week, closing up for the third week in a row with a 2.68% gain. Sony is on pace to challenge a formidable 52-week high set back in mid-May. SNE will also report earnings on Aug. 1, before markets open. Our play on the rising Japanese stock market SNE remains a BUY.
iShares Dow Jones US Home Construction (ITB) dipped 1.83%. ITB remains stubbornly, but staunchly, at its 200-day MA. Steam continues to build for a housing sector rebound as the Commerce Department reported a 0.5% rise in U.S. home construction spending in May. This brings spending to $874.9 million — the highest level since September 2009. Another indication of the positivity building in this sector is the uptick in ITB’s option markets. Option volume is up significantly, and traders are looking for a 9% gain by mid-August. ITB is a BUY.
ProShares Ultra Gold (UGL) lost 2.24% for its first week in your portfolio. UGL appears to be re-testing its recent $41.50 low. A successful bounce from this level would be a positive signal to investors that the bullish turnaround for this horrendously beat-down precious metal is finally underway. UGL is a BUY.
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