Financial Letter - June 15th 2020
277th 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.
S&P 500 Index - The Center of the World's Financial Solar System
The S&P 500 index (SPY and derivatives) fell 4.8% for the week of June 8th 2020. M. Powell's sobering speech on Wednesday incited pessimism into the market and pushed many to close their positions resulting in the market dropping by 5% on Thursday. All the sectors of the S&P 500 had a negative week. The Energy sector had the worst performance with a drop of 11.20%.
The SPY opened on Thursday morning with a significant negative gap and had the the worst day since March. The VIX's EMAs crossed negatively indicating a potential rise in the market's volatility. It closed its week at 36%, a level too high for directional delta based strategies.
VIP accounts (CKL0522 Portfolio with ETFs) - 2020/06/15
Week of June 8th 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 closed positions:
Profit on the option strategy from the 8th to the 12th of June : profit of 399$ US
Net weekly profit: 399$ US per client
VIP accounts (CKL0522 Portfolio on Futures Market) - 2020/06/15
Week of June 8th, 2020
There were no transactions in the futures accounts this week due to the high level of the VIX. We are waiting for a more favorable volatility index to resume our strategies.