The usual early summer lull is here as usual. With lighter volumes and people away it can mean some crazy volatility. You can find massive moves both up and down, enough to drive anyone sensible crazy.
There are a few ways of dealing with it, clear out and come back in September and enjoy your hols without a worry.
Sell up and wait for some bad days over the summer and do a little bargain hunting. Or, keep hold of some of your best ones, ignore the volatility and do a little shorting to cover.
I'm off on a roadtrip to California so I've done some clearing out, got some cash on the table, took loads of profits recently. Got some shorts open in the high 6800s with trailing stops. Keeping hold of some of my good ones. Will look out for the odd day when away to buy at lows.
My main message over the summer to anyone is: don't overtrade. Buy something on a bad day only if you really think it's a good one and get out of it fast with a small loss if your entry point is wrong.
My other message is: don't take young kids to music festivals!
After my big clearout, taken profits, bought property I'm in the incredibly lucky position of not really having to worry about money ever again. I would have more than enough rental income now to pay to live well even if all my shares went to zero.
You may not be in the same position yet - so do take care over the summer especially if you are new to trading/investing. Keep your fingers off the trade button unless something looks exceptional.
The last thing I want while I am away is to add anything volatile because even a trailing stop means I would probably get stopped out at a loss.
But I added some Scisys (LON:SSY) after getting a poor entry point last time. It's a nice quiet one which shouldn't crumble.
I got 5,000 at 83 live at the seminar. Recent statements have all been strong. And it's buying back its own shares which should at least keep the price stable.
It keeps winning contracts and generates plenty of cash. So I hope for a re-rating up to 100 or so in time and it looks cheap in the 80s. Hard to get many too which is a good sign.
I couldn't resist topping up on more Xaar (LON:XAR) this time at 493. As explained last time looks a good recovery play and as those that came to the seminar could see I was up nearly £5,000 on it already on spreadbets. I'm aiming for a return to the 600 level on this one.
I bought some Blinkx (LON:BLNX) at 32.2. I don't like volatile shares with question marks however I went for this because of its huge cash pile. But it's not one I'd want to be in for very long and would expect to be out quite soon hopefully grabbing a nice profit. Someone between 40 and 50 would probably do.
I shorted three, all live at seminars on spreadbets - Howden Joinery,Kofax, and Ricardo, all three looking a bit overpriced. Howden tried to break 326 three times and failed so did a fairly lumpy short on that at the seminar at 325 and it's paying off nicely, indeed all three shorts have. I don't really intend to hang onto them for that long and expect to bank profits pretty soon, probably before I leave for the states.
Playtech (LON:PTEC) has become a lovely trading range share and I'm trying to repeat the buy at under 600 and sell around 650 trick, this time got them at 596.
I sold Npt at a tad over 17 for a profit of £132. Although it looks good quite simply it refused to go higher and was then starting to come down which seemed some kind of warning sign and with level 2 looking weak I sold up. A statement then came out yesterday and it went down but I'm a bit puzzled with this one but why argue with the market? I'd be looking to buy it back quite soon on the weakness.
I've taken the final profits in the lovely Kentz That seems weird given I've owned it for a number of years but it has gone now after the bid, I felt it worth taking a few small pence less than the bid price of 935 to bank the money rather than wait a while for the full 935 in cash.
So that is a final profit banked for the website of £19,805 on the various open positions and over 5 years Kentz has earned me banked profits in excess of £100,000.
Goodbye Kentz(LON:KENZ), you have been a star! Thanks for all the lovely emails that have been coming in from those of you who bought Kentz particularly at the various seminars it came up at over the years. (Well done Chris from Wigan!!)
I sold dsg for a nice profit banked of £972 - it reached target and I had a nice quick run with it. And I banked half JLF at 121 for a profit of £250.
So that is total profits banked for the website of £21,159
The rest of the portfolio looks lovely - goodness knows what open profits are overall but probably in excess of £150,000.
Of course on the site I don't include costs but then I don't include dividends either and the dividends outweigh the costs by a long way.
I shall probably lob in trailing stops as I am off on my holidays and I've closed off most of my spreadbets for now to resume in September. However I have build up some shorts on the ftse in the late 6800s so at least I make some money should the markets do a summer tank and I also have some suk2 in the ISA (See my book).
If the ftse busts higher over the summer then I've left stops in to close out the ftse shorts.
And with that I leave you till September, see you again with any market action I've been up to on September 10th when regular updates resume.