Financial Letter - January 27th, 2019
208th 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 the end of January, 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 the publication of a “Daily Bulletin” with buy, sell, hold signals, based on short-, intermediate-, long-term, on five securities. All subscribers to our Financial Letter will receive this daily DB. We hope this will be useful.
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 business and finance. It's also available on all other readers platforms (Kobo, iBook, etc.).
A second book is available on the reading software like Kindle, Kobo, iBook, etc. Its title is “The Trend Hunter” and it is in English.
The mean of return of portfolios managed by Charles K. Langford Inc. in 2016 has been 10.90% and standard deviation of 3.75, after trading commissions and ¾ of management fees.
The mean of return of portfolios managed by Charles K. Langford Inc. in 2017 has been 13.50% with a standard deviation of 4.65%, after trading commissions and ¾ of management fees. The large standard deviation is explained by options strategies that have given a higher return.
This message is to inform you that in 2019, CKL will once again offer its private tutoring service for investors. The tutoring will be 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 fourth week of 2019 with feeble winds that ended the week with a loss of 0.2% %, or a gain of 6.3% since the beginning of the year. The VIX (see charts 3 and 4) is slightly below 20%, a level more positive but still too 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, more 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
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Middle-term bullish |
Long-term bullish |
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Canadian Market |
GTA.V |
ALEF.V |
About Options
Investors that believe the current Canadian market offers interesting bullish opportunities, they can buy the call CCO (stock closed Friday at $16.00) March15/14.00 @ $2.24 whose delta is 0.86 and gamma 0.10 (accelerator of delta). This call will offer a profit of 86% of the stock increase at a cost that is about 7 times lower than the present price. If the stock goes down, the maximum loss is the premium.
SPY - Daily - 2019/01/25
SPY - Weekly - 2019/01/25
VIX - Daily - 2019/01/25
VVIX - Daily - 2019/01/25
