Financial Letter - April 13th, 2020
268th issue (since 2015/01/24)
(1) We offer portfolio management services for futures market accounts with a minimum of 25K USD or the equivalent in CAD.
(2) CKL Inc. offers an actively managed portfolio with US ETFs combined with option strategies. This portfolio requires a minimum of 250K USD or the equivalent in CAD.
(3) And evidently we offer high quality long term portfolio management with low fees (0.9%). This portfolio requires a minimum of 100K CAD.
*No transfer of funds required.
For more information on any of these portfolios, write to us at info@charlesklangford.com.
Our next intensive courses:
The dates for the following courses have changed, here are the new dates:
- Construction de portefeuille (May 3rd 2020)
- Investissements stratégiques avec les marchés à terme (Futures) (May 4th 2020)
**Due to the government's Covid-19 guidelines on social distancing and isolation we will be offering these two courses live online through Zoom. **
*A screenshot sent to us by a participant of the option course given on April 5th via Zoom.
For more information on these courses visit our seminars page:
http://www.charlesklangford.com/en/services/seminars
To reserve a spot for these coures, write to us at info@charlesklangford.com
S&P 500 Index - The Center of the World's Financial Solar System
The S&P 500 index (SPY and derivatives) had it's best week since 1974 with a rise of 12% for the week of April 6th. Signs of a plateau in new Covid-19 cases restored investor's confidence in the market. Friday April 10th the market was closed for Good Friday.
The week of April 6th, the SPY price chart completed a W configuration that indicates with high probability that the market is expected to rise. The moving averages (EMA 7,27) have moved closer to eachother and soon enough will cross positively indicating a change in trend in the market. Meanwhile, the moving averages (EMA 7,27) of the VIX (Volatility Index) have crossed negatively predicting a fall in the volatility of the market, showing that the pessimism in the market is decreasing. However, the VIX is still at extremely high levels meaning technical analysis is not as reliable vis a vis it's friendlier levels of inferior to 20%. Nonetheless, the VIX's moving averages crossing negatively is a step in the right direction.
VIP accounts (CKL0522 Portfolio with ETFs) - 2020/04/13
Week of April 6th 2020
Our strategy this week was to once again add an option strategy to our support product (SPY) that is currently losing in an opened position. This strategy is profitable if the product continues falling, remains at the same level or goes up until a certain price.
Weekly profit/loss on the opened positions:
Profit on the underlying (SPY) : 21,007$ US
Weekly profit/loss on the closed positions:
Loss on the protective option strategy: 3,122$ US
Net weekly profit: 17,885$ US per client
VIP accounts (CKL0522 Portfolio on Futures Market) - 2020/04/13
Week of April 6th 2020
Since the extremely high levels of volatility in the market caused by the Covid-19 pandemic, the margin requirements for ES futures contracts have almost tripled. Therefore, we started buying micro S&P 500 contracts (MES). In the acounts with larger balances, we constructed a bullish option strategy with protections with options on the ES (E-mini S&P 500). The positions on the MES contracts are still open and expire the third week of June. The option strategy on the ES expires on the 24th of June.
Weekly profit/loss on the opened positions:
Profit on the MES contract : 400.75$ US
Profit on the ES option strategy : 953$ US
Net weekly profit on the accounts with both positions: 1,353.75$ US
We would like to advise our clients that during this pandemic we remain opened, constantly following the market and available for any questions.
The team at CKL Inc. wishes you a great week!