Reduce: NUE

Reduce: Nucor Corporation

Just one signal today. This time it is a sell signal for Nucor Corporation (NUE). We reduced our position at an average price per share of USD 44.56. We bought these shares at an average price of USD 39.63 on 11 June 2020 (see our post). This result is a gain of 12.44%. A nice short-term trade for a stock that we've held since 2019.

This is an example of our trading algorithms being able to suggest this kind of short-term trades if the right opportunity arises. In fact, at the they create a buy signal it's not known yet, when a sell signal for the stock will be created. It might as well create yet another buy signal. Also, instead of creating a signal within 5 days, it might be weeks or months until the next signal.

While not all trades suggested by our algorithms result in positive returns, this is a nice example of a successful trade. Overall, our trading algorithms get it right more often than wrong. And that adds some yield above and beyond what the portfolio would return if we were to balance only once per month, quarter or year.

Reduce TROW, OTIS

Two signals today, one for TROW and one for OTIS.

Reduce: T. Rowe Price Group Inc.

Based on our trading systems, we reduced our holdings in T. Rowe Price Group Inc. (TROW) at an average price per share of USD 122.46. With unit costs of USD 74.47 this represents a gain of 64.44%.

We started this position in 2016. TROW is a dividend aristocrat and therefore belongs to a group of companies that - as a group - are a great base investment.

Reduce: Otis Worldwide Corporation

Our trading system created a sell signal for Otis Worldwidw Corporation (OTIS) at USD 57.41. We reduced our position accordingly. With average unit costs of USD 45.35 this means a gain of 26.59%. This is a great result as we started this position only at the beginning of April 2020 when OTIS was spun off from Raytheon Technologies (RTX).

As with TROW, OTIS is a sound base investment as they count as dividend aristocrat, too. The dividend history of RTX (formerly United Technologies, UTX) is considered for determining that status.

Reduce VUG; Increase V

Reduce: Vanguard Growth ETF

Our trading algorithm reduced our position in Vanguard Growth ETF (VUG) at an average share price of USD 194.23. Unit costs were USD 199.53. This is a loss of 2.66%. The algorithm reduced the relative exposure to this particular ETF.

Increase: Visa Inc.

Although only started this week, we added more shares to our position in Visa Inc. (V) at an average share price of USD 192.50.

At times our trading algorithms may choose to start a new position based on specific investment criteria. This is based on a whole range of factors that includes profits, profit growth, liabilities, dividend history, revenue growth and similar more. One factor is also relative performance to other stocks, to ETF's, to indices or our own US portfolio.

Signals for MA, V, NUE, WMT, WBA, KO - Closing ROST Position

After a couple of days without trading signals, today our trading algorithms created seven signals. A further signal was created for ROST, which was unusual, so let's start with that one first.

Close: Ross Stores Inc

Ross Stores Inc (ROST) accounced that they suspended their quarterly dividend for the time being. We don't see this changing any time soon given they reported a quarterly net income of negative USD 306 millions, i.e. a loss. As a consequence ROST no longer meets the requirements to be counted as a dividend aristocrat. This is a bit sad to see since they became a dividend aristocrat only earlier this year.

We started a position in ROST in March. This week we sold all shares to close the position. The average sell price was USD 94.20. With unit costs at USD 75.74 this represents a gain of 24.37%. This is a very good result given the circumstances due to the high volatility in the financial markets caused by the Coronavirus pandemia.

(Image source: Wikipedia)

New: Mastercard Inc A

We started a new position with Mastercard Inc A (MA). MA is a growth stock. We expect their growth story to continue although we anticipate that there will be an impact from the Covid-19 crisis.

Average buy price was USD 292.54.

New: Visa Inc

Another addition to our US portfolio is Visa Inc (V), also a growth. Similar story to Mastercard: we expect it to continue. Here, too, we expect the growth story to continue. The COVID-19 crisis will have an impact, though. Because of lockdowns worldwide both Visa and Mastercard may see reduced revenues. As countries come out of lockdown and as the economy recovers, results of these two financial services stock should improve again as well.

As with Mastercard, we see Visa as a longterm investment. Average buy price was USD 189.37.

Increase: Nucor Corp

We've had our Nucor Corp (NUE) since early 2019. The stock price has come done since then from about USD 57 to below USD 40. We added to our position along the way.

This week our trading algorithms created a buy signal. We added more shares at an average price of USD 39.63.

NUE is a dividend aristocrat and currently has a dividend yield of about 3.9%.

Increase: Walmart Inc.

The trading algorithm also produced a signal for Walmart Inc. (WMT). We've had this position since 2019. During the COVID-19 crisis, the stock performed well. As a retailer WMT was an essential business and was able to keep its shops open. We reduce our position a couple of times in March realizing gains.

We had a sell signal in April as well, this time at USD 126.01. Today they buy signal was at USD 120.02. In essence the trading algorithm reduced the position somewhat and is now increasing it again. In other words: sell high, buy low. In some sense the algorithm treats "high" and "low" alwasy as relative to the overall market.

Increase: Walgreens Boots Alliance Inc.

The next buy signal was for Walgreens Boots Alliance Inc. (WBA). We started this position in 2018. The stock price development has been disappointing as it dropped from about USD 65 to about USD 40.

Along the way, however, we did a few trades. This week's buy signal helps reducing the unit costs. Note that the trading algorithms are designed such that it seizes buying opportunities without exaggerating the exposure to a given company.

This week we added more shares at an average price of about USD 40.86.

Increase: The Coca-Cola Company

The final buy signal today was for The Coca-Cola Company (KO). This is a position we started in 2017. In March and April this year, the position was reduced a couple of times to realize some gains at prices between USD 46.98 and USD 56.85.

Today's signal added shares again at a lower price of about USD 45.56 per share.

Signals for CINF, BEN, CARR, VGT

Today our systems created four signals: three sell signals and one buy signals.

Reduce: Cincinatti Financial Corporation

Based on the sell signal for Cincinatti Financal Corporation (CINF) we reduced our position at an average price per share of USD 71.12. With average unit costs of USD 55.70 this represents a gain of 27.68%, a very good result.

The previous sell signal was on Thursday, 04 June 2020, at a price of USD 64.3017 (see blog post).

We started this position in 2016 and increase and reduced our holding several times since then to make use of good buying and selling opportunities.

Reduce: Franklin Resources

And another sell signal for Franklin Resources (BEN). We already reduced this position somewhat on Friday, 05 June 2020 (see our post), at a price of USD 22.68.

Today we reduced it further at an average price per share of USD 24.2850. With unit costs of about USD 16.46, this means a gain of 47.54%. This is quite satisfactory.

This position was started in 2016. We added and reduced this position several times to seize good opportunities.

Reduce: Carrier Global Corporation

Carrier Global Corporation (CARR) has seen several sell signals recently (see our blog posts here, here and here). We started this position in April 2020 and increased several times in that month. In May our systems started to created sell signals, so we reduce our position several times.

Today we sold at an average price per share of USD 24.2850. With unit costs of USD 13.32 we realized a gain of 82.32%, which is a very satisfactory result.

Add: Vanguard Information Tech ETF

To increase our exposure to the technology sector we started the position in Vanguard Information Tech EFT (VGT) earlier this month. Today we added at an average price of USD 271.96.

Like all other holdings mentioned in this post, we see VGT as a long-term investment, although we may choose to follow our system's signals to increase or decrease respectively.

Disclaimer

Past results have no bearing for future results. Keep in mind that we do not accept any responsibility for your investment decisions. Do your own research and due diligence and consult with your financial advisor before making decisions. Any investment vehicle mentioned on this site is used for illustration purposes only and does not constitute investment advice.

A Busy Day: EMR, XOM, OTIS, LEG, AMCR, VGT, AOS, BEN

Triggered by the positive numbers from the US job market, the US stock markets are up today. The S&P 500 gained 2.62%. The US job market reported 2.5 million new jobs in May, the most jobs added in a single month since 1948. The unemployment rate dropped from 14.7% in April to 13.3% in May. Analysts expected an unemployment rate of up to 18%.

Our systems tend to create more signals when there are larger market moves (up or down) compared to when things remain mostly unchanged. Today was no difference with 8 signals, one buy and 7 sell signals.

Here is the rundown.

Reduce: Emerson Electric

We started our position of Emerson Electric (EMR) in 2016. Since March we reduced our holding slightly at various price point.

Today we sold at an average price of USD 67.17 per share. With unit costs at USD 57.08 this reprsents a gain of 17.68%. Not earth shattering but still a good result.

Reduce: Exxon Mobil

Oil companies have been unders pressure for along time. Exxon Mobil (XOM) is no different. We've held this position since 2018. We increased our position in 2019. Just a few days after the lowpoint at end of March we added even more shares at an average price of USD 37.05.

While the overall position still carries an unrealized loss, our systems have created a couple sell signals in April at USD 39.97 and USD 43.47. Today's sell was at an average price of USD 52.72. Compared to the low point in March this is a gain of 42.29%.

Basically with this holding the play was buying when nobody liked the stock, then slowly sell the shares acquired at the low point as the stock price increases again. Without closing this position our systems help realizing a gain by seizing the opportunity to get additional shares at a steep discount.

XOM is not out the woods yet. The company has postponed the increase of their quarterly dividend, which should have happend in the current quarter. To keep their status as dividend aristocrat they will have to increase their dividend that is payable in the fourth calendar quarter of 2020, and if that increase is just a fraction of a cent.

There are indications that business for oil companies will improve again over the next few months. As the economies around the world start to come out of the coronavirus hibernation, demand for oil is likely to increase again. The oil price has recovered from its ridiculous low of minus USD 40 (!). Output of existing wells is being reduced, e.g. the number of oil rigs in the US is dropping.

As business improves again, the stock prices of oil companies should continue to increase as well. Today XOM advanced by 8.11% and Chevron (CVX) was up by 4.71%. Obviously this is just a single day, so is not indicative by any stretch of imagination. On the other hand, XOM is up by over 40% since its low point in March 2020.

Reduce: Otis Worldwide Corporation

Our position started when Otis Worldwide Corporation (OTIS) was spun off from what is now called Raytheon Technologies (RTX), formerly United Technologies (UTX). We increased our position since then several times. Today was the first time our systems produced a sell signal.

We reduced our position at an average price of USD 58.14. With average unit costs of USD 46.0305 this represents a gain of 26.31%. This is a very good results for two months.

Reduce: Leggett & Platt Inc

And yet another sell signal for Leggett & Platt (LEG). Just a day ago there was a sell signal at USD 35.57 (see our post).

This time the sell signal for LEG was at USD 37.04. With average unit costs of USD 28.52 this represents a gain of 29.87%. This is a very good result.

Reduce: Amcor Plc

Amcor Plc (AMCR) increased in price further, so our systems determined that it is time to reduce again. The previous sell signal was generated only two days ago (see our post).

This time we reduced our position at an average price of USD 10.87. With unit costs of USD 7.40 this is a gain of 46.89%. A very good result, given we started this position in March 2020 only.

Add: Vanguard Information Tech ETF

Another buy signal for Vanguard Information Tech ETF (VGT). We've previously provided more details about the rationale for having this position in our US portfolio (see out post).

Today we increased our position with at an average price of USD 269.65.

Reduce: A.O. Smith Corp

For A.O. Smith Corp (AOS) our systems created a sell signal. We have held this position since July 2019 and added more shortly after.

Today we reduced the position at an average price of USD 52.03. With unit costs of USD 46.34 this represents a gain of 12.28%.

Reduce: Franklin Resources

We started this position in 2016. Performance in terms of stock price was disappointing so far. However, the company continued to increase their dividend each year. Dividend yield is currently at about 4.67%.

In April 2020 our system created a couple of buy signals. We increased our holdings accordingly. Our algorithms took the opportunity to buy near the bottom.

With today's sell signal we reduced our position at an average price of USD 22.68. With average unit costs of USD 16.46 we realized a gain of 37.79%. A quite satisfactory result for just 1.5 months.

Summary

It was a comparably busy day for us. However, we are confident that today's transactions were the right thing to do based on the signals generated by our system.

All of the stocks mentioned in this posts are long-term positions in our portfolio, i.e. a minimum period of 10 years. However, based on recommendations of our algorithms we may choose to increase or decrease any of the positions in the future.

Comparing our portfolio, which is managed by our software, with the S&P 500 index shows that our portfolio is up by 0.20% year-to-date while the S&P 500 index is down -1.14%. In other words, year-to-date our portfolio outperformed the index by 1.34%.

Disclaimer

Past results have no bearing for future results. Keep in mind that we do not accept any responsibility for your investment decisions. Do your own research and due diligence and consult with your financial advisor before making decisions. Any investment vehicle mentioned on this site is used for illustration purposes only and does not constitute investment advice.

Sell signals for AFL, CARR, CINF, LEG

Reduce: Aflac

Several sell signals were created today for positions in our portfolio. The first one being Aflac (AFL). We started this position in 2016, reduced it somewhat in 2019 and then increased it again on a couple of occasions. Based on today's signal we reduced the position at an average price of USD 39.0912. The unit costs were at USD 32.321. This represents a gain of 20.95%. A good result.

AFL being a dividend aristocrats we continue to see the company as a long-term investment. Based on signals from our systems we may or may not increase or decrease our position.

Reduce: Carrier Global Corporation

Yet another sell signal was created for Carrier Global Corporation (CAR). The stock continues to perform quite well relative to the stock market. As a result, our systems are reducing this position. This time we sold at an average price of USD 22.64. With unit costs at 13.566 this represents a gain of 66.89%. This, too, is quite satisfactory result.

CARR is a dividend aristocrat as well. We continue to see it as a long-term investment. As with the other stocks mentioned in this post we may or may not increase or decrease this position in the future.

Reduce: Cincinatti Financial Corporation

The next sell signal was for Cincinatty Financial Corporation (CINF). We've had this position since 2016. Since then there were several sell and buy signals. Most recently there were buy signals at prices of USD 60.82, USD 55.80 and USD 53.9585 in May.

We reduced our position at an average price of USD 64.3017. With average unit costs of USD 55.70 this represents a gain of 15.44%. Given the cirumstances in the last few months this is a good result.

As mentioned above CINF is a long-term investment but we may increase or decrease the position in the future.

Reduce: Leggett & Platt Inc

The final sell signal for today was for Leggett & Platt Inc (LEG). This stock is also quite interesting in terms of the signals over the last couple of months. On 2nd April a buy signal was created at USD 23.95 followed by a sequence of sell signals in the same month, each of them at increasingly higher prices from USD 27.03 up to USD 36.02.

Then on 11 May another buy signal was generated at USD 28.52. Since then there were several sell signals, again with increasing prices from USD 30.31 up to USD 35.57 today.

With unit costs of USD 28.52 today's sell represents a gain of 24.72%. Again, a very good result.

Leggett & Platt Inc is a dividend aristocrat, too. We see it as a long-term investment and will continue to keep this position, reducing or increasing if the right opportunity presents itself.

Disclaimer

Keep in mind that we do not accept any responsibility for your investment decisions. Do your own research and due diligence and consult with your financial advisor before making decisions. Any investment vehicle mentioned on this site is used for illustration purposes only and does not constitute investment advice.