Financial Letter - February 3rd 2019

Financial Letter

February 3, 2019

209th Issue (since 01/24/2015)   

CKL Inc. is presently offering a portfolio to their clients consisting of only one US ETF  with options strategies on the US market. This kind of portfolio requires a capital of 250,000US$ and level 4 in options trading. 

In February,  a short book on the Put/Call ratio will be available on Kindle and other electronic reading platforms . The title is: « L’antagonisme entre les options put et call: l’analyse du put/call ratio ». The authors of this short book are Charles K. Langford and Laurence P. Darveau.   

Since the middle of October we started publishing  a “Daily Bulletin” with buy, sell and hold signals based on short-, intermediate and long-term signals on five securities in the US and Canadian market. We have decided to discontinue this project due to the small number of subscriptions. 

The book “L’alchimie qui crée l’or – Le chasseur de tendances boursières II” is online (Amazon.ca and the title) on Kindle. It is in French. The book is now a “bestseller” in the category of business and finance. It's also available on all other electronic reading platforms (Kobo, iBook, etc.).

A second book is also available on electronic reading platforms like Kindle, Kobo, iBook, etc. Its title is “The Trend Hunter” and it is in English.

In 2016, the average return of portfolios managed by Charles K. Langford Inc. was 10.90% with a standard deviation of 3.75, after trading commissions and ¾ of management fees.

In 2017, the average return of portfolios managed by Charles K. Langford Inc. was 13.50% with a standard deviation of 4.65%, after trading commissions and ¾ of management fees. The larger standard deviation is explained by options strategies that gave higher returns. 


This message is to inform you that CKL is currently offering  private tutoring services for investors. The tutoring is offered on Wednesdays from 9:00AM to 9:00PM with Gary Argiriou.

M. Argiriou is Charles K. Langford’s assistant and a financial analyst at CKL Inc. He’s completed his Bachelor’s of Finance at John Molson School of Business and has completed both CSC exams. He is currently in the process of completing the IMT in order to eventually obtain the CIM accreditation. He has been working with Mr. Langford since September 2017 and will be able to guide and help investors with any questions.

Examples of tutoring topics:

  • Technical analysis
  • Option Strategies
  • Programming of Stockcharts (indications, scans, alerts, etc.)
  • Help with Disnat’s trading platform or other platforms  

* Feel free to suggest another topic in which you believe would help.

The cost for the private tutoring is $ 50/hour + tax and all appointments must be scheduled at least one week in advance. Only cheque payments issued to the company will be accepted. The tutoring will be offered at our offices in Old Montreal at 888 Wellington Street.

Let us know if you have any questions.


Market Risk (Systematic Risk)

The SPY sailed the fifth week of 2019 with strong winds that ended the week with a gain of 1.6%, or a gain of 7.9% since the beginning of the year: the strongest performance for January since 1987. The VIX (see charts 3 and 4) is at 16%, a level more positive but still fragile for trading comfortably. We start to enter in the market but progressively, as its moment become more positive.  

A private indicator (CKL21) shows the market is, in the short term, neutral to negative.   

The Langford Management

Presently our investments are in ETFs and ETN offering a high return, with a dividend yield between 5 to 10 % per year, at pro rata temporis, monthly. The market has still a strong positive bias. We don’t think for the moment to change the allocation because also the products with higher returns are also bullish.

In the USD accounts, still we have cash, in the form of FLOT, MINT, NEAR. In the CAD accounts, it is PSA or the equivalents. In the average, our portfolios are invested 60% in revenue and 40% in directivity.

In some, more aggressive accounts we have increased the capital synthetically with option strategies to profit of the actual upward strong momentum. In accounts that allow futures markets, we have futures contracts in long position on stock indexes.

Our portfolio management is always ad hoc, for each client. But also, we offer now five standardized mini-portfolios for clients interested:

  • Bullish aggressive
  • A contrarian as a hedge or profit
  • Bullish and dividend oriented
  • Against inflation
  • Bullish, aggressive on non-traditional assets.

(The portfolio management fees of Charles K. Langford Inc. is 0.9% of assets, per year (equivalent to $900 per $100,000). The capital under management is invested exclusively in ETF, ETN and options)

Among a group of selected stocks and ETFs, the week just ended has given middle- and long-term buy signals for the following stocks and ETFs. 

TREND FOLLOWING

 

Middle-term bullish

Long-term bullish

Canadian Market

NXO.V
SEK.V
SRL.V
AIM.TO
GOOS.TO
PAAS.TO
PD.TO
PVG.TO
RCI/B.TO

AGB.V
AIIM.V
CSL.V
EMC.V
FIRE.V
PTQ.V
SGN.V
TETH.V
BCB.TO
BIP/UN.TO
CIA.TO
HMMJ.TO
IRON.TO
KML.TO
LIF.TO
NML.TO
OTEX.TO
RY.TO
SES.TO
TECK/B.TO
VFF.TO
WJA.TO
YRI.TO


About Options

Investors that believe the current Canadian market offers interesting bullish opportunities, they can buy the call GOOS (stock closed Friday at $68.58) March15/62.00 @ $9.80 whose delta is 0.71 and gamma 0.02 (accelerator of delta). This call will offer a profit of 71% of the stock increase at a cost that is about 8 times lower than the present price. If the stock goes down, the maximum loss is the premium.

SPY - Daily - 2019/02/01

SPY - Weekly - 2019/02/01

VIX - Daily - 2019/02/01

VVIX - Daily - 2019/02/01