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Economics Market Update Stock Market

Stock Market Week in Review (12/4/22) – Powell Rally

This weekly market recap is brought to you by Koyfin, a powerful analytical tool that I am proud to partner with. Their platform is entirely customizable for whatever data you want to look at including stocks, ETFs, mutual funds, currencies, economic data releases (one of my personal favorites used often for these posts), crypto, and even transcripts of company events! Click the link above to get a special offer only for Dividend Dollar readers or go give my product review a read if you’re interested!

Weekly Review

The market seemed to be in a turkey coma as there wasn’t much action in the first half of the week. The market was choppy while waiting for Fed Chair Powell’s speech on Wednesday and the key economic data to follow.

The market liked what it heard in Mr. Powell’s speech and things took off in a big way on Wednesday off of his hints that the Fed may slow the pace of rate hikes.

Some will argue that he actually loosened the screws a bit. I would argue he didn’t even bring his toolbox. The market, which was waiting for a to be hit like a nail by a hammer, was relieved when he did not.

This became a rally catalyst that caused some short-covering and some chasing action as the S&P 500 broke above key resistance at its 200-day moving average.

Powell’s actual speech repeated just about everything he said following the November FOMC meeting. Some added attention was paid to his summation that “the ultimate level of interest rates will be somewhat higher than previously expected” versus the original contention that “the ultimate level of interest rates will be higher than previously expected.”

Mr. Powell’s talk (and tone) presumably weakened the fear of another 75-basis point rate hike. Granted the fed funds rate is still going higher from current levels, but market participants can smell a peak in the policy rate around 5.00% in the first half of next year. If the FOMC elects to raise the target range by 50 basis points at the December meeting, the target range will be 4.25-4.50%.

On Thursday, market participants received the October Personal Income and Spending Report, which favored the “smaller” rate hike at the same time it favored a soft landing possibility.

Personal income increased 0.7% month-over-month in October and personal spending jumped 0.8%. The PCE Price Index was up 0.3% month-over-month and the core-PCE Price Index, which excludes food and energy, increased 0.2%.

On a year-over-year basis, the PCE Price Index was up 6.0%, versus 6.3% in September, and the core-PCE Price Index was up 5.0%, versus 5.2% in September.

The big rally effort slowed as market participants contended with the notion that the upside moves might have been an overreaction and that the growth environment is going to be challenging given the past rate hikes and the rate hikes that are yet to come.

A 49.0% reading for the November ISM Manufacturing Index, which is the first sub-50% reading (the dividing line between expansion and contraction) since May 2020, hurt some of the rebound enthusiasm.

The November employment report on Friday also tested the rally. Nonfarm payroll growth was higher than expected, the unemployment rate held near a 50-year low of 3.7%, and average hourly earnings increased at a robust 0.6% month-over-month, leaving them up 5.1% year-over-year.

The report itself was good news from an economic standpoint, yet the market saw it as bad news as it gives more room for the Fed to slow the economy with rate hikes. The report signals higher for longer with respect to the target range for the fed funds rate.

The initial retreat following the employment report saw the S&P 500 breach its 200-day moving average, but by Friday’s close the index reclaimed a position above that level. All in all, this week was a win for the bulls given that the market showed nice resilience to selling efforts and the S&P 500 held the line at that key technical level, next is the downward trend line 👀

8 of the 11 S&P 500 sectors closed with a gain on the week. Communication services and consumer discretionary enjoyed the biggest gains. Energy, utilities, and financials were the lone sectors in the red by the end of the week.

In the Treasury market, there were big down swings predicated on the thinking that maybe the Fed won’t have to raise rates as high as feared. The continued inversion along the yield curve reflects the festering concerns about the Fed raising rates into a weakening economy and inviting a recession. The 2-yr note yield fell 19 basis points to 4.29% and the 10-yr note yield fell 18 basis points to 3.51%.

Dividend Dollars’ Opinion

That’s it for the recap. Now for my opinion!

As I stated last week, we just barely broke above the 200-day EMA. We opened this week below it and would have finished there if the market hadn’t rallied so hard off of Powell’s speech. I even called that we could gap fill to the 4,080 area, and we did!

I’m not trying to make a habit out of predicting things, just simply share with you what I’m noticing. And I’m noticing that an end of year rally could push us slightly higher to the mother of all trendline’s. The red line in my chart below has been rejected every time since ATHs.

We could very easily stay fighting for that trend line through the end of the year before a significant breakout happens. But when it does happen, the direction is anybody’s guess. My money is on down.

Here’s why: what did Powell say on Wednesday that warranted a 3% surge on the S&P? Signals of slowing rate hikes are nice… but the probability of a 50-point rate hike in December has not changed. The CME Fedwatch tool showed a 75% probability of a 50-point hike last week. The probabilities for a smaller hike in the February meeting were fairly unchanged as well.

People all over are anticipating a “Fed Pivot”. But the Fed is far from pivoting. A Fed Pivot happens when the Fed reverses their monetary policy stance and occurs when the underlying economy has changed to such a degree that the Fed can no longer maintain its policy.

What on Wednesday suggested that this was the case? We are still a ways away from the peak rate and even then we will be at that rate for sometime before a rate cut is imminent. So why did the market bounce as it did following the speech?

The main reason is that expectations were low. We expected him to stay hawkish, instead we got optimistic. To me, playing the expectations game is silly. Rates are rising, and they will be staying there for a while. This will eat at companies’ earnings and sooner or later will be reflected in stock prices.

Be ready for deals, the technical indicators say a dip is coming. Worse yet, a recession is still not out of the picture.

I think that inflation is still a larger problem than the market anticipates. We have seen the market move higher on “better-than-expected” inflation readings where inflation is still over 7% and CPI has yet to peak.

The Fed may lessen the size of the rate hikes, but we are a long way away from ever having rates decreased. Till then, the market is at risk of entering a very serious recession.

The Fed is trying to engineer a soft-landing and so far they have done a great job of it.

However, the longer rates stay high, the closer we may get to seeing the Fed’s planned economic slow down go too far. GDP, employment, real incomes, etc. These things will start to waiver, earnings will start to miss, and the market will start to look quite overbought at these levels which will kick off some serious selling and capitulation.

Because of this, I am short with a position in $SDS and $SPXS and am holding more cash than normal. The short is only 2% of my portfolio and the cash is 10%. I’ll be adding to this short and cash position through to the end of the year if we remain trending up, but I think we are getting closer to a flip

I constantly make moves in my portfolio according to this thesis. You can read about these moves in my weekly portfolio update here.

And if you like updates like this, follow my Twitter or my CommonStock page where I post updates on the economic data throughout the week.

Regards,

Dividend Dollars

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 12/2/2022 Week in Review

Welcome back to the weekly Dividend Dollars portfolio review! This portfolio update is brought to you by Sharesight, a portfolio tracking tool that I am happy to partner with. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. I wrote a review of the product that you can read here if you’re interested in learning more! Click the link above or the picture below to get a special offer only for Dividend Dollar readers!

Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis. I am a young investor in my 20’s and by sticking to this strategy over the long term, the magical powers of compounding are on my side. This allows me to more easily build substantial positions in dividend paying stocks over time, which will one day help me reach the ultimate goal of being financially free through the sources of passive income they provide. You can read more about the strategy here. Let’s dive into the portfolio review!

Portfolio Value

To date, I have invested $12,340 into the account the total value of all positions plus any cash on hand is $12,639.84. That’s a total gain of 2.43%. The account is up $82.60 for the week which is a 0.66% gain.

We started building this portfolio on 9/24/2021 and when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down -8.61% which puts us 11% higher than the market! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!

We added $60 in cash to the account this week, trades made will be broken out below.

Portfolio

Above is a dashboard of the portfolio that tracks annual dividend income, yield, beta, dividend growth, and more.

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week, and the red are positions that I trimmed. Our moves this week decreased my PADI by $9 to $467.

Dividends

This week I received a $9.52 dividend from Intel, a $3.51 dividend from $XYLG, and a $3.72 dividend from Cummins

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically.

Dividends received for 2022: $349.91

Portfolio’s Lifetime Dividends: $372.83

Trades

This week was a week of playing with options (a bit too much) and reorganizing my Healthcare exposure. While holding onto cash and waiting for a drop to add, I’ve fallen victim to trying to boost my gains by day trading with it. Over the last month I lost roughly $230 to day trading options while holding onto my cash. I need to be better about this! Monday and Wednesday show some bad plays in that realm.

Monday was my typical automatic investments into my ETFs. Wednesday, I consolidated my short position into only $SDS and added to it. I planned on investing in $CCO long term and started a position but later questioned it and sold the next day.

Thursday, I sold $AMGN and $MRK for +40% gains and decided to start a position in $JNJ as my chosen healthcare stock. The reasoning for this is that I do not know much about Amgen’s or Merck’s products. I know they have good patents right now that are really performing well, but I don’t know how sustainable that is or how long those patents are good for. Will they be able to create a new cash generating products after their current patents expire? I don’t know and I’m not in the business of trying to guess that. I like $JNJ because they have a base business of well-known healthcare staples that supports the riskier pharmaceutical endeavors, which is much more comfortable for me as an investor.

Friday was only some dividend reinvestments.

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 28th, 2022
    • Apple ($AAPL) – Entered 12/16 143P at 3.35 and exited at 3.90 ($55 gain)
    • Netflix ($NFLX) – Overnight 12/9 335C from last Friday entered at $0.49 and exited at $0.27 ($22 loss)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $397.55 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.86 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $77.55 per share (weekly automatic buy)
  • November 30th, 2022
    • Clear Channel Outdoor ($CCO) – bought 100 shares at $1.06
    • NVIDIA ($NVDA) – entered 12/9 $150P at $2.22 and exited at $1.12 ($110 loss)
    • S&P 500 Bear 3X ($SPXS) – Sold 2 shares at $19.52 to add to the 2x position
    • ProShares Ultra Short S&P 500 ($SDS) – added 3 shares at $41.96
    • Global X S&P 500 CC & Growth ETF ($XYLG) – dividend reinvested
  • December 1st, 2022
    • Clear Channel Outdoor ($CCO) – sold 100 shares at $1.08 ($2.14 gain)
    • Amgen $AMGN) – sold whole position at $282.68 ($100.40 gain)
    • Merck ($MRK) – sold whole position at $109.81 ($62.08 gain)
    • Johnson & Johnson ($JNJ) – bought 1 share at $178.48
  • December 2nd, 2022
    • Intel ($INTC) – dividend reinvested
    • Cummins ($CMI) – dividend reinvested

Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto the rest of my cash. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and be ready to buy income producing assets at a discount!

Read the weekly market review to get a recap of the week and help arm yourself with market knowledge! This weekly update and the last weekly update provide opinion pieces from myself and explain why I am bearish on the market.

Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading! See you next week and stay safe!

Regards,

Dividend Dollars

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/25/2022 Week in Review

Welcome back to the weekly Dividend Dollars portfolio review! This portfolio update is brought to you by Sharesight, a portfolio tracking tool that I am happy to partner with. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. I wrote a review of the product that you can read here if you’re interested in learning more! Click the link above or the picture below to get a special offer only for Dividend Dollar readers!

Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis. I am a young investor in my 20’s and by sticking to this strategy over the long term, the magical powers of compounding are on my side. This allows me to more easily build substantial positions in dividend paying stocks over time, which will one day help me reach the ultimate goal of being financially free through the sources of passive income they provide. You can read more about the strategy here. Let’s dive into the portfolio review!

Portfolio Value

To date, I have invested $12,280 into the account the total value of all positions plus any cash on hand is $12,548.07. That’s a total gain of 2.18%. The account is up $144.10 for the week which is a 1.16% gain.

We started building this portfolio on 9/24/2021 and when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down -11.00% which puts us 12% higher than the market! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!

We added $60 in cash to the account this week, trades made will be broken out below.

Portfolio

Above is a dashboard of the portfolio that tracks annual dividend income, yield, beta, dividend growth, and more.

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week, and the red are positions that I trimmed. Our moves this week increased my PADI by $7 to $476.

Dividends

This week we only on dividend: $1.98 from $SMHB

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically.

Dividends received for 2022: $330.47

Portfolio’s Lifetime Dividends: $353.39

Trades

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 21st, 2022 (weekly automatic buys are a crucial part of my portfolio. Building substantial positions in these ETFs help me build my diversity and cash flow in a tried-and-true simple method.)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $394.88 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.62 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $77.21 per share (weekly automatic buy)
  • November 22nd, 2022 (today my $SPY short hit my stoploss. And it hit it hard. I’m a little bummed about it, but it was a lesson I needed in not getting caught up in the emotions of timing the market and feeling strong conviction in one direction over the other. It was also a great lesson in seasonality and option premium burn. Overall, I am still bearish on the market and will continue to hold onto my short positions.)
    • Ally Financial ($ALLY) – added 1 share at $26.18
    • SPY Short – Closed the short for roughly a 60% loss at 1.33.
    • S&P 500 Bear 3X ($SPXS) – added 2 shares at #20.32
  • November 25th, 2022 (An article was posted by Politico on Wednesday that made shares drop by roughly 4%. The article says that “The Federal Trade Commission is likely to file an antitrust lawsuit to block Microsoft’s $69 billion takeover of video game giant Activision Blizzard.” That is huge news… but them it goes on to say that “A lawsuit challenging the deal is not guaranteed, and the FTC’s four commissioners have yet to vote out a complaint or meet with lawyers for the companies…”. Essentially, the article is a bunch of hearsay from “three people with knowledge of the matter”. In my opinion, the article has no grounds of the claims coming from a credible source or having any proof of coming actions. My thesis hasn’t changed and I still believe that Microsoft has done a good job of showing that the acquisition is not anti-competitive and is in fact beneficial for consumers, despite Sony’s best attempts at slandering the deal.)
    • Activision Blizzard ($ATVI) – added 1 share at $73.37
    • Leveraged US Small Cap ETN ($SMHB) – dividend reinvested

Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto the rest of my cash. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and be ready to buy income producing assets at a discount!

Read the weekly market review to get a recap of the week and help arm yourself with market knowledge! This weekly update and the last weekly update provide opinion pieces from myself and explain why I am bearish on the market.

Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading! See you next week and stay safe!

Regards,

Dividend Dollars

Categories
Economics Market Recap

Stock Market Week in Review (11/25/22) – Thanksgiving & FOMC

This weekly market recap is brought to you by Koyfin, a powerful analytical tool that I am proud to partner with. Their platform is entirely customizable for whatever data you want to look at including stocks, ETFs, mutual funds, currencies, economic data releases (one of my personal favorites used often for these posts), crypto, and even transcripts of company events! Click the link above to get a special offer only for Dividend Dollar readers or go give my product review a read if you’re interested!

Weekly Review

Despite the low volume from this holiday week, the markets were still able to extend their green streak. Thanksgiving week has averaged 0.6% returns since 1945, so this was not uncommon.

Chart, bar chart

Description automatically generated

The seasonality helped to offset the market’s ongoing growth concerns which may prove to be exacerbated going forward with China re-engaging in COVID-related measures.

China confirmed their first COVID-related death in six months. New lockdown measures have been reported in Beijing.

Ignoring seasonality, the upside this week was encouraged by better-than-expected earnings from retailers like Best Buy ($BBY), and Abercrombie ($ANF) as well as some tech names like Dell ($DELL) and Analog Devices ($ADI). Deere ($DE) the farm equipment company also was among the more notable earning reports this week.

Disney ($DIS) was also a winner this week off of the news that CEO Bob Chapek stepped down with former CEO Bob Iger reclaiming the roll for two years.

Like earnings, some economic reports were better than expected this week. The October Durable Goods Orders, October Home Sales, and the November University of Michigan Index of Consumer Sentiment read well. On the other hand, Weekly Initial Claims and Preliminary November IHS Markit Manufacturing and Services PMIs were worse than expected.

The FOMC minutes for the November 1-2 meeting was revealed on Wednesday. The report showed that “a substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate.” This supports the market’s notion that the Fed is likely to raise rates by 50 basis points in December rather than a 75-point hike. Before the minutes were released, the CME Fedwatch Tool showed an 80% chance that the next hike is for 50 basis points.

All 11 sectors of the S&P closed with a gain this week. Materials and Utilities making the largest gains while energy showed the thinnest gain.

Dividend Dollars’ Opinion

That’s it for the recap. Now for my opinion!

As I stated last week, due to positive seasonality the S&P could push above the 200-day EMA. I also stated that volume would be low, so if it pushed higher, it would be slow. And that’s exactly what happened this week.

Chart, line chart, histogram

Description automatically generated

We barely broke above and held the 200-day EMA this week, and that was with low volume. That makes me think there’s not much strength behind it.

However, this seasonality could continue through the end of the year. I wouldn’t be surprised if we see a gap fill to the $4,080 area or even test the trend line drawn down from the ATH in January.

But after that, it could be anybody’s guess.

Over the medium term, I am bearish. I think that inflation is still a larger problem than the market anticipates. We have seen the market move higher on “better-than-expected” inflation readings where inflation is still over 7% and CPI has yet to peak.

The Fed may lessen the size of the rate hikes, but we are a long way away from ever having rates decreased. Till then, the market is at risk of entering a very serious recession.

The Fed is trying to engineer a soft-landing and so farthey have done a great job of it.

However, the longer rates stay high, the closer we may get to seeing the Fed’s planned economic slow down go too far. GDP, employment, real incomes, etc. These things will start to waiver, earnings will start to miss, and the market will start to look quite overbought at these levels which will kick off some serious selling and capitulation.

Recession indicators such as GDP forecasts, yield curve inversion, falling PMI, and tightening lending standards suggest it is more likely to go that route rather than the preferred soft-landing.

Because of this, I am short with positions in $SDS and $SPXS and am holding more cash than normal. The short is only 1.3% of my portfolio and the cash is 7.1%. I’ll be adding to this short and cash position through to the end of the year if we remain trending up.

I will be writing a portfolio update later this weekend, so stay tuned for that in order to read more about my positions and plans.

And if you like updates like this, follow my Twitter or my CommonStock page where I post updates on the economic data throughout the week.

Regards,

Dividend Dollars

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/18/2022 Week in Review

Welcome back to the weekly Dividend Dollars portfolio review! This portfolio update is brought to you by Sharesight, a portfolio tracking tool that I am happy to partner with. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. I wrote a review of the product that you can read here if you’re interested in learning more! Click the link above or the picture below to get a special offer only for Dividend Dollar readers!

Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis. I am a young investor in my 20’s and by sticking to this strategy over the long term, the magical powers of compounding are on my side. This allows me to more easily build substantial positions in dividend paying stocks over time, which will one day help me reach the ultimate goal of being financially free through the sources of passive income they provide. You can read more about the strategy here. Let’s dive into the portfolio review!

Portfolio Value

To date, I have invested $12,220 into the account the total value of all positions plus any cash on hand is $12,354.46. That’s a total gain of 1.10%. The account is down $83.28 for the week which is a 0.67% loss.

We started building this portfolio on 9/24/2021 and when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down -11.00% which puts us 12% higher than the market! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!

We added $60 in cash to the account this week, trades made will be broken out below.

Portfolio

Above is a dashboard of the portfolio that tracks annual dividend income, yield, beta, dividend growth, and more.

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week, and the red are positions that I trimmed. Our moves this week increased my PADI by $7 to $469.

Dividends

This week we received $6.79 in dividends! $1.64 from $APD, $1.84 from $TXN, $1.92 from $O, and $1.39 from $ALLY.

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically.

Dividends received for 2022: $328.49

Portfolio’s Lifetime Dividends: $351.41

Trades

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 14th, 2022 (weekly automatic buys are a crucial part of my portfolio. Building substantial positions in these ETFs help me build my diversity and cash flow in a tried-and-true simple method. I also added a new position in $SDS to add to my short ideas.)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $399.92 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $26.00 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $77.48 per share (weekly automatic buy)
    • ProShares UltraShort S&P ETF ($SDS) – added 3 shares at $42.98
    • $APD Dividend reinvested
  • November 15th, 2022 (Only dividends today.)
    • $TXN dividend reinvested
    • $O dividend reinvested
    • $ALLY dividend reinvested
  • November 18th, 2022 (Little day trade with cash on hand.)
    • 1 contract $SPY $394 Put 11/21 in at $1.86 out at $1.93

Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto the rest of my cash. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and be ready to buy income producing assets at a discount!

Read the weekly market review to get a recap of the week and what economic events are coming in order to help arm yourself with a strategy for your future buys!

Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading! See you next week and stay safe!

Regards,

Dividend Dollars

Categories
Economics

Stock Market Week in Review (11/18/22) – Fed Talks and Retail News

This weekly market recap is brought to you by Koyfin, a powerful analytical tool that I am proud to partner with. Their platform is entirely customizable for whatever data you want to look at including stocks, ETFs, mutual funds, currencies, economic data releases (one of my personal favorites used often for these posts), crypto, and even transcripts of company events! Click the link above to get a special offer only for Dividend Dollar readers or go give my product review a read if you’re interested!

Weekly Review

The market had a slight pullback this week following the recent big run. Trading reflected some consolidation efforts and growth concerns in a slowing economic environment.

The Fed has been in the middle of those growth concerns. Fed officials have reiterated that they are not done yet raising rates. Comments from St. Louis Fed President Bullard were the most impactful for market participants this week. He acknowledged that the fed funds rate is not yet at a sufficiently restrictive level and then showed in a Taylor Rule exercise that it may need to go to 5-7% in the battle to get inflation under control.

Other remarks from Fed (FOMC voters) officials included:

Fed Governor Christopher Waller said “we’ve still got a ways to go” before stopping interest rate hikes. Later in the week he said, that he’s more comfortable stepping down to a 50-basis point hike at the December FOMC meeting following the economic data releases from the last few weeks.

Fed Vice Chair Brainard said it may ‘soon’ be appropriate to slow the pace of rate hikes.

Kansas City Fed President George for her part said a real slowing in labor markets and a contraction in the economy may be needed to reduce inflation.

Boston Fed President Collins said in a CNBC interview that a 75 basis point rate hike is still on the table.

The continued inversion in the yield curve this week shows worries about the Fed over tightening. The 2-yr Treasury note yield rose 19 basis points this week to 4.50% while the 10-yr note yield fell one basis points to 3.82%.

We received some data this week that played into the concerns of a deteriorating economic outlook. The October Producer Price Index showed some welcome disinflation at the producer level with total PPI up 8.0% yr/yr, versus 8.4% in September, and core PPI, which excludes food and energy, up 6.7% yr/yr, versus 7.1% in September.

There was also the Retail Sales Report for October which showed a 1.3% increase after a flat reading from last month. Despite the stronger-than-expected retail sales data, there is are worries that discretionary spending activity may slow in coming months as more spenders feel the pinch of rising interest rates, stubbornly high inflation, a reduced wealth effect, and increased layoff announcements and concerns about job security.

Retailers Target ($TGT) and Walmart ($WMT) acknowledged that consumers were pulling back on discretionary purchases after reporting earnings this week. Walmart reported good results for its fiscal third quarter, but CEO John David Rainey noted that consumers were “making frequent trade-offs and biasing spending toward everyday essentials.”

In general, there was a positive response to earnings reports from retailers this week. Lowe’s ($LOW), Macy’s ($M), Bath & Body Works ($BBWI), Ross Stores ($ROST), Foot Locker ($FL), Gap ($GPS), and Dow component Home Depot ($HD) all traded up after reporting their respective quarterly results.

For the tech sector, Cisco ($CSCO), Applied Materials ($AMAT), and Palo Alto Networks ($PANW) also enjoyed some gains after their earnings reports.

On the flipside, William-Sonoma ($WSM) and Advance Auto ($AAP) both fell after disappointing with their earnings reports.

An added point of concern that market participants dealt with this week is that earnings estimates for 2023 are too high and will be subject to downward revisions. Investors took some money off the table this week and are mindful about how much they are willing to pay for every dollar of earnings.

To be fair, some contrarian buying interest was stoked by BofA Global Fund Manager Survey early in the week that showed an elevated cash position of 6.2%.

There was a knee-jerk response to a halting report earlier this week that a Russian bomb had killed two people in NATO state Poland. This development raised the market’s anxiety level about the geopolitical situation and potential for a wider conflict in Russia’s war with Ukraine. However, follow-up intelligence reports suggested the missiles were not fired by Russia and there wasn’t any deliberate action here. That finding helped mitigate the angst surrounding the initial report.

Also, the cryptocurrency market continues to be in focus as more news emerges about the FTX meltdown.

Only three S&P 500 sectors squeezed out a gain this week, utilities (+0.8%), health care (+1.0%), and consumer staples (+1.7%). On the flip side, energy (-2.4%) and consumer discretionary (-3.2%) were the biggest losers.

Dividend Dollars’ Opinion

That’s it for the recap. Last week was the first week I decided to add my take, and I really enjoyed it! I think I will make this a regular part of the update going forward.

For my opinion, I still feel conviction in my belief that the market is due for a leg down. As discussed last week, my reasons for this thought are:

1. I believe the rally last week following the CPI report was unfounded and that the true inflation reading was misunderstood. Inflation has not yet peaked.

2. A Fed pivot is still a long way away, and Fed talk from this week confirmed that.

3. This is a new reason; Fed talk this week alluded to higher chances of a recession occurring. The soft-landing they’ve been aiming for is becoming more and more difficult to achieve. Leading recession indicators in the chart below are in deep recession territory. These have not provided a false signal in over 50 years.

4. In addition, $SPX was not able to recover the 200-day EMA, which is where prior rallies had failed.

There’s a chance that next week, with holiday seasonality, $SPX can push above the 200 EMA. However, thanksgiving week generally is slow push higher with not much volume. I doubt it will have much strength if any to push above the EMA and stay there.

So far, my short position is down by about 30%. Ouch! Good news is that it’s not a significant portion of my account. I still have lots of cash on hand to invest if a dive comes. When starting this short, I definitely didn’t think hard enough about the IV, the expiration of my put, or waiting for a clear 200 EMA rejection. My premium has been shot a bit but we will see how it plays out. In the meantime, I also added a new small position in $SDS for an easier to manage short position.  You can read about these moves in my weekly portfolio update here.

And if you like updates like this, follow my Twitter or my CommonStock page where I post updates on the economic data throughout the week.

Regards,

Dividend Dollars

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/11/2022 Week in Review

Welcome back to the weekly Dividend Dollars portfolio review! This portfolio update is brought to you by Sharesight, a portfolio tracking tool that I am happy to partner with. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. I wrote a review of the product that you can read here if you’re interested in learning more! Click the link above or the picture below to get a special offer only for Dividend Dollar readers!

Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis. I am a young investor in my 20’s and by sticking to this strategy over the long term, the magical powers of compounding are on my side. This allows me to more easily build substantial positions in dividend paying stocks over time, which will one day help me reach the ultimate goal of being financially free through the sources of passive income they provide. You can read more about the strategy here. Let’s dive into the portfolio review!

Portfolio Value

To date, I have invested $12,160 into the account the total value of all positions plus any cash on hand is $12,400.47. That’s a total gain of 1.98%. The account is up $463.39 for the week which is a 3.88% gain.

We started building this portfolio on 9/24/2021 and when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down -10.38% which puts us 12% higher than the market! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!

We added $60 in cash to the account this week, trades made will be broken out below.

Portfolio

Above is a dashboard of the portfolio that tracks annual dividend income, yield, beta, dividend growth, and more.

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week, and the red are positions that I trimmed. I actually sold more than I bought this week, so those moves aren’t evident on the chart. Keep reading below to see those! These moves decreased my PADI by $30 to $462.

Dividends

This week we received no dividends.

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically.

Dividends received for 2022: $321.71

Portfolio’s Lifetime Dividends: $344.63

Trades

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • November 7th, 2022 (weekly automatic buys are a crucial part of my portfolio. Building substantial positions in these ETFs help me build my diversity and cash flow in a tried-and-true simple method. I took a day trade with my cash for a tiny gain this day and made a buy ahead of $AY’s earning)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $377.54 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.20 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $73.83 per share (weekly automatic buy)
    • Atlantica ($AY) – added 1 share at $28.17
    • SPDR S&P 500 ETF ($SPY) – day traded $381 11/9 call for a $4 gain
  • November 8th, 2022 (As mentioned last week, I was looking to cut some positions and build up cash as I believe a better buying opportunity is coming in the short term. I trimmed $LMT and $AMGN  and will buy these shares back at a lower price.)
    • Lockheed ($LMT) – sold 0.25 shares at $491.16
    • Amgen ($AMGN) – sold 0.25 shares at $295.24
  • November 9th, 2022
    • ETRACS 2x Small Cap ($SMHB) – bought 1 share at $6.85
  • November 10th, 2022 (I trimmed $ALLY, $AMGN, $MRK, and $SMHB. I was actually down on $ALLY and $SMHB, but both of these experienced some awesome pops this week. I figured I would take some off of the table and buy those shares back at a lower price in a few weeks. Per my bearishness as mentioned in my market report, I opened a short position today as well.)
    • Amgen ($AMGN) – sold 0.3 shares at $292.87Merck ($MRK) – sold 1 share at $101.67ETRACS 2x Small Cap ($SMHB) – sold 15 shares at $7.72Ally Financial ($ALLY) – sold 0.5 shares at $29.02
    • SPDR S&P 500 ETF ($SPY) – opened a $340 1/20/23 put at $3.03

Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto the rest of my cash. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and be ready to buy income producing assets at a discount!

Read the weekly market review to get a recap of the week and what economic events are coming in order to help arm yourself with a strategy for your future buys!

Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading! See you next week and stay safe!

Regards,

Dividend Dollars

Categories
Economics

Stock Market Week in Review (11/11/22) – FTX & CPI Reading

This weekly market recap is brought to you by Koyfin, a powerful analytical tool that I proud to partner with. Their platform is entirely customizable for whatever data you want to look at including stocks, ETFs, mutual funds, currencies, economic data releases (one of my personal favorites used often for these posts), crypto, and even transcripts of company events! Click the link above to get a special offer only for Dividend Dollar readers or go give my product review a read if you’re interested!

Weekly Review

WHAT. A. WEEK. There was turmoil and losses in the cryptocurrency market as FTX was hit by a crypto-bank run. The week ended with FTX Group filing for Chapter 11 bankruptcy. And that’s just the intro for this week.

Midterm elections were held on Tuesday, the final results of which are mostly unknown as of this writing. Reports suggests the GOP will manage to win a narrow majority in the House, yet some Senate races are still too close to call. In fact, it might take the December 6 runoff election in Georgia to determine if Democrats or Republicans have control of the Senate.

With the GOP holding a thin majority in the House, it is likely that the next few years likely won’t include any new major legislation. In other words, there will be political gridlock for the next few years unless the two parties work together to avoid becoming a “do nothing Congress.”

The stock market this week was anything but a “do nothing market.” It was filled with trading excitement that produced the best day for the market on Thursday since 2020 and some huge gains for the major indices.

The main catalyst for the excitement was the October CPI report, which came in better than expected.

Briefly, total CPI increased 0.4% month-over-month in October (consensus 0.7%) while core-CPI, which excludes food and energy, increased 0.3% month-over-month (0.5%). The monthly changes left total CPI up 7.7% year-over-year, versus 8.2% in September, and core CPI up 6.3% year-over-year, versus 6.6% in September.

The market had a couple takeaways from this report (a few of which I do not agree with). First, the report helped validate the peak inflation view. Second, the report may also compel the Fed to take a less aggressive rate-hike approach at the December FOMC meeting. And lastly, some encouragement came from the understanding that the shelter index (computed with a lag) contributed more than half of the monthly all items increase, suggesting price increases moderated in many other areas.

This was welcome inflation news. When combined with a huge drop in the dollar and market rates, we saw a huge rally on Thursday. The Nasdaq Composite for its part soared 7.4%. Many of the beaten-up growth stocks made double-digit percentage moves, including Amazon.com ($AMZN), but just about every stock came along for the CPI ride.

Growth stocks were the favored rebounders as the 10-yr note yield dove 31 basis points to 3.84%. The 2-yr note yield, which is sensitive to changes in the fed funds rate, plunged 32 basis points to 4.31%.

Those moves were precipitated by changing rate-hike expectations. The fed funds futures market now sees an 83.0% probability of a 50-basis points rate hike at the December FOMC meeting (versus 56.8% before the CPI data) and a terminal rate of 4.75-5.00% by June (versus 5.00-5.25% before the CPI data).

The dollar got clobbered on those same shifting expectations. The U.S. Dollar Index fell a whopping 4.0% on the week to 106.42.

The drop in the dollar took some of the pressure off the multinationals and aided in the belief that downward revisions to 2023 earnings estimates may not be as severe as feared, assuming the weakness persists.

Another factor aiding that belief was a Bloomberg report that China relaxed quarantine guidelines for inbound travelers and is aiming to avoid city-wide testing when COVID transmission chains are clear. This news, which came on Friday, helped boost oil and copper prices.

It also added to the market’s newfound enthusiasm for a year-end rally. The S&P 500, which dipped below 3,500 following the disappointing September CPI report in mid-October, peeked its head above 4,000 on Friday and closed just below that level when the final bell for the week rang.

All 11 S&P 500 sectors ended higher this week, none bigger than the information technology sector (+10.0%), which was driven by a huge comeback effort among the semiconductor stocks and by Apple ($AAPL) and Microsoft ($MSFT). For the week, the Philadelphia Semiconductor Index was up 14.9%.

Other standouts included the communication services (+9.2%), materials (+7.7%), real estate (+7.1%), consumer discretionary (+5.9%), and financial (+5.7%) sectors. The weakest performers were the defensive-oriented health care (+1.8%) and utilities (+1.4%) sectors.

Dividend Dollars’ Opinion

That’s it for the recap. Now for my take! I obviously trimmed some gains early with my cuts last week. This week would have been ideal, but there’s no way of knowing that the market was going to moon after that CPI report. I personally think the rally on Thursday and Friday was unfounded, for a couple of reasons.

The first reason is that many people are misunderstanding what the CPI really is really telling us. Annual inflation year-over-year through last October was 7.7%, which is lower than the last year-over-year reading for August. On the surface this looks promising, but you have to look at the bigger picture. We don’t care what happened 11-months ago with inflation. We care about what happened last month and last month was not good.

Look at the picture below. The blue line is the annual CPI inflation rate. The purple line is the actual CPI index value. The purple line is key here. Inflation is still rising, and quickly. The market rallied off of the headlines of the blue line that showed a decline in the annual rate from 8.2% to 7.7%. This is not an actual decline in inflation, it’s a slow down in the annual rate which is in fact still increasing! The only reason we are seeing the CPIYOY rate start to decrease is because our numerator in the percent change formula ((new value-initial value)/initial value) has caught up significantly because we have been in a high inflation environment for more than 12 months.  

The second reason is that the market’s idea that the Fed may start to pivot is total crazy-talk. Inflation has not peaked and the Fed will not stop raising rates until it does. And when it does, I image we will stay at that rate for some time before we see a decrease. A pivot is a long ways away for us. Dallas Fed President on the Thursday said that he doesn’t see “the decision about slowing the pace as being particularly closely related to the incoming data.”

The market totally misread the CPI release, in my opinion, and the rally we saw as a result is unfounded. But oh well, my mistake was assuming that markets would be logical! They rarely are. Market movements are more based on expectations. And expectations of expectations. This is the danger inherent in trying to time the market and understand the macros. You may get it, but the market may not even care. Inflation is the highest we’ve seen in 40 years! But this newest reading showed that it is increasing a pace slower than we expected! Imagine the worst and you’ll never be disappointed I guess!

In summary, I trimmed my positions too soon. Oh well, gains are gains! In case you couldn’t tell from my opinion piece, I am still bearish. We still don’t have a great picture on the progress of inflation. I called a downtrend through the end of the year too soon, but I do think that it will come.

Because of this opinion, I sold some positions, took some gains, and grew my cash position to about 8% of my whole portfolio and opened a short position on the market. I’ll be looking to deploy my cash closer to the end of the year and will watch my short closely. You can read about these moves in my weekly portfolio update here.

And if you like updates like this, follow my Twitter or my CommonStock page where I post updates on the economic data throughout the week.

Regards,

Dividend Dollars

Categories
Resources

Koyfin Review: A Robust Analytical Tool to Empower Every Investor

For me, investing in the stock market is the single most important aspect of reaching financial freedom. Unfortunately, investing can be seen as a zero-sum game as it provides everyone with equal opportunity to make money. There are winners and losers. So how do you try to make sure that you’re consistently on the winning side?

There are two quick tips to help you with this. First is knowing your time horizon and investing through long-term positions. Second is having the right tools and knowledge to help you find the right opportunities.

The latter is where Koyfin comes in. Koyfin is a free stock market dashboard that allows users to pair fundamental and technical analysis on one screen. Koyfin offers seemingly infinite ways to customize your dashboard in a way that complements your strategy.

What is Koyfin?

Koyfin is an investment analytics platform created in 2016 by former Wall Street Traders and CEO Rob Koyfman. Through my affiliation with the CommonStock creator’s group, I actually got to hop in a zoom call for a Koyfin demo led by the CEO himself.

What he showed was awesome. Through his time on Wall Street with Goldman Sachs and his use of their outdated and expensive data terminals he decided that there had to be a better way to analyze data and get some insight for investing.

Every industry he could think of had turned to tech and put the user first, all expect investing. His mission became to revolutionize the industry by building a platform that puts the user in control, gives them access to live data on anything you can think of, provides strong analytical tools, and all at a price that doesn’t keep retail investors out of the game.

And Koyfin has done just that. Their platform puts amazing analytical power at your fingertips. You can browse data across all asset classes. You can build dashboards to keep information relevant to your strategy at the forefront of your attention. You can dive into a company’s financials, read transcripts of their events, chart with more technical indicators than you can even thing of, you can pick apart economic news and even twitter chatter. Koyfin brings into your view all the things that move the stock market and affect your portfolio.

Features

Financial Analysis

As a dividend investor, financial analysis is key to what I do. Koyfin provides comprehensive financial analysis and is one of its distinguishing factors for me.

Koyfin gets you access to all of the financial statements that public companies release. The way that it is structured helps to reduce the complexity of financial statement analysis and keeps the essentials very easy to access.

You can dive into financial statements, look at valuation metrics, pick apart analyst estimates, look at profitability measures, solvency ratios, cash flow measures, and anything else you can imagine. Better yet, any financial measurement or piece of data can be overlayed onto the stock’s chart to help you find correlations and form trade ideas.

You have quick access to key financial highlights. You can even create your own financial templates and build it so that you are only ever looking at the metrics that you care about. That way you can continuously keep track of a company’s financial health according to your own preferences.

Dashboards

Koyfin’s dashboard capabilities are awesome. You can use their premade dashboards for “Today’s Markets”, “Market News”, “Market Movers”, and a premade dashboard for items you add to a watchlist.

The “Today’s Market” dashboard is a one-stop-shop as you can see in the screenshot below. It provides you breakdowns of major indexes, sectors, commodities, global markets, news, and more. If you want to stay plugged into what’s happening the markets, this is your screen.

Charting and Technical Analysis

Koyfin’s charting capabilities are by far my favorite aspect of the website. You can chart your favorite stocks and add any number of indicators that fit with your charting/investing style. Take the below screenshot for example, I charted Cummins ($CMI) with Bollinger Bands, an EMA, and an RSI indicator. There are swaths of other things you can add to the chart. You can even add financials to the chart, like the FCF I added to the below chart. You can add things like EPS, EPS surprise based on analyst consensus, debt levels, market cap, even share repurchases!

Not only can you customize stock charts with an unimaginable number of fundamental, technical, and valuation indicators, statistics, and drawings, but you can put together these charts on commodities, currencies, ETFs, mutual funds, options, crypto, and even economic reports. For example, view below the chart I used when writing about the PMI report in a pervious economic update article.

Pricing

Amazingly, most of the items an investor would care about is available to free users. If you find that you’re itching for more, the scale up for greater access is pretty reasonable. I could not do what I do without the basic plan, if I’m being honest with you. The full access to the snapshots is what I use to put together my charts with all of the special indicators, fundamentals, and valuation data. Reader’s of Dividend Dollars can get special 10% of any Koyfin package using this link, otherwise definitely try out the free plan to give it a shot.

Koyfin Review Summary

In sum, think of Koyfin as a budget Bloomberg terminal. An analytical platform for researching stocks and other items for the mainstream investor! The best data and research out there are often locked behind a steep cost privy to analysts, firms, and funds. I honestly believe that Koyfin levels the playing field for investors like you and me.

Koyfin gives you everything you need to conduct property technical, fundamental, and market analysis while also giving you the tools to observe all of the assets that matter to you, all in one place. I’ve been using Koyfin for months, and I find it very difficult to use any other tool.

As mentioned before, my readers are offered a 10% discount on any Koyfin package. However, if you’re not interested in any package, still sign up for a free plan and give it a shot! All readers can sign up for Koyfin here.

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/4/2022 Week in Review

Welcome back to the weekly Dividend Dollars portfolio review! This portfolio update is brought to you by Sharesight, a portfolio tracking tool that I am happy to partner with. Their platform makes tracking trading and dividend history, understanding your performance, and saving time a breeze. I wrote a review of the product that you can read here if you’re interested in learning more! Click the link above or the picture below to get a special offer only for Dividend Dollar readers!

Here at Dividend Dollars, our investing approach is a dividend growth strategy with aspects of value investing and fundamental analysis. I am a young investor in my 20’s and by sticking to this strategy over the long term, the magical powers of compounding are on my side. This allows me to more easily build substantial positions in dividend paying stocks over time, which will one day help me reach the ultimate goal of being financially free through the sources of passive income they provide. You can read more about the strategy here. Let’s dive into the portfolio review!

Portfolio Value

To date, I have invested $12,100 into the account the total value of all positions plus any cash on hand is $11,846.14. That’s a total loss of -2.1%. The account is down a measly $0.63 for the week which is a 0.01% loss.

We started building this portfolio on 9/24/2021 and when compared to the S&P 500 we are outperforming the market so far! Within that same timeframe, the S&P 500 is down -15.37% which puts us 13% higher than the market! I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!

We added $60 in cash to the account this week, trades made will be broken out below.

Portfolio

Above is a dashboard of the portfolio that tracks annual dividend income, yield, beta, dividend growth, and more.

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week, the blue ones are positions that I reinvested dividends into, the yellow ones are positions that announced a dividend increase this week. I actually sold more than I bought this week, so those moves aren’t evident on the chart. Keep reading below to see those! These moves decreased my PADI by $38 to $492.

Dividends

This week we received three dividends totaling $21.74: $0.27 from SPDR S&P 500 ETF ($SPY), $18.35 from AT&T ($T), and $3.12 from Global X S&P 500 Covered Call & Growth ETF($XYLG)

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically.

Dividends received for 2022: $321.71

Portfolio’s Lifetime Dividends: $344.63

Trades

Below is a breakdown of the trades I made this week and the reasoning behind them!

  • October 31st, 2022 (weekly automatic buys are a crucial part of my portfolio. Building substantial positions in these ETFs help me build my diversity and cash flow in a tried-and-true simple method. As mentioned last week, I was looking to cut some positions and build up cash as I believe a better buying opportunity is coming in the short term. For those reasons I sold $MO, $HPQ, and trimmed $LMT. I sold $MO simply because I only liked it for the yield, I think the stock has potential for when marijuana becomes federally legalized, but for now the downside facing the tobacco market isn’t worth it for me. For $HPQ, I had a decent sized position that was mostly flat. There are other tech positions I’d rather invest in, so no harm in cutting this one. For $LMT, I was up by 48% last week, I just decided to trim some to capture some gains. All of these moves built me a cash position of $800 to deploy at better prices.)
    • SPDR S&P 500 ETF ($SPY) – added $10 at $387.43 per share (weekly automatic buy) and dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – added $10 at $25.55 per share (weekly automatic buy)
    • Schwab US Dividend Equity ETF ($SCHD) – added $10 at $74.00 per share (weekly automatic buy)
    • Altria ($MO) – sold position of 7.237581 shares at $46.14 per share (total loss of $4.91)
    • HP ($HPQ) – sold position of 11 shares at $27.75 per share (total gain of $7.83)
    • Lockheed ($LMT) – sold 0.25 shares at $486.12 (approximately a third of my gains, will re-add the 0.25 shares at a lower price).
  • November 1st, 2022
    • AT&T ($T) – dividend reinvested
    • Global X S&P 500 Covered Call & Growth ETF ($XYLG) – dividend reinvested
  • November 3rd, 2022 (decided to take an easy little day trade with my cash position, I was down bad on this trade until the flush at the end of the day. Could have bagged a $40 gain but I took my money out as soon as the window was there!)
    • SPDR S&P 500 ETF ($SPY) – bought two 11/4 $370 puts with average price of $178, sold both contracts with an average price of $181 ($6 gain).

Next week I will continue to add $10 into each ETF ($SPY, $XYLG, and $SCHD) and will continue to hold onto the rest of my cash. I really want to deploy this cash position into $T, $CMCSA, and $INTC to build 100 share positions in them for covered call activities.

Summary

That is it for the update this week. Let’s kill it next week. Stay patient and be ready to buy income producing assets at a discount!

Read the weekly market review to get a recap of the week and what economic events are coming in order to help arm yourself with a strategy for your future buys!

Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading! See you next week and stay safe!

Regards,

Dividend Dollars