Stock markets finished higher last week with the Dow Jones Industrial Average up just over 100 points and the benchmark indexes climbing around 2% in what was a shortened week thanks to the public holiday. This was one of the best weekly performances since March. Read more »


Well after four days of solid gains, stock markets finished in the red again yesterday as the price of crude oil collapsed, dropping 2.4%. I have to admit I didn’t see oil falling as much as it has done. I’ve always been somewhat of a perma-bull when it comes to energy and the dwindling global reserves of the black stuff.

Anyway, I only have one oil explorer in the portfolio so my other stocks will hopefully balance out the volatility. And I was pleased to see $PKG jump over 10% on Tuesday. Read more »


I just published an article on Seeking Alpha about one of the stocks in my portfolio; Alliance Resource Partners $ARLP.

ARLP is an Eastern MLP coal company that has been able to raise it’s distribution every quarter since 2007. This coal stock has had an impressive rise since the financial crisis, gaining over 300%. However the stock has been hard hit in recent weeks along with most of the rest of the market. Read more »


Shiller CAPE may be elevated and volatility may be low but recent economic data has been improving. This is now pointing to above trend GDP growth in the third quarter, bouncing back from the Winter snap. July and August are usually quiet months for trading and there lacks a catalyst for a downward turn.

As a result, I have cautiously increased my longs and made these stock market buys last week:

Toyota Motors $TM

Toyota Motors Price Chart

Freeport McMoRan Copper & Gold $FCX

Freeport McMoRan price chart

FutureFuel $FF

FutureFuel price chart

Intelliquent $IQNT

Intelliquent price chart

Diploma Plc $DPLM.L

Diploma price chart

Castings $CGS.L

Castings plc price chart

Games Workshop $GAW.L

Games Workshop price chart

 


 


The ECB cut rates, unemployment stayed at 6.3% and the VIX dropped below 11 this week, the lowest level since 2007. Although I want to be long, I can’t ignore the drop in volatility and feel a correction is just around the corner. Accordingly, I have moved 90% into cash.

Here are this week’s links:

Why you can’t just buy the VIX

Correction 2014: Are you prepared?

What next for the euro? Interesting insight from Monex

How to take money off trend followers

Buying the most shorted has been rewarding

Keep an eye on the world’s economies with Trading Economics

 

That’s all for now. More next week. 🙂