Financial Letter - September 15th, 2019

239 Issue (since 01/24/2015)   

CKL Inc. now offers a portfolio based essentially on performance (0.9/10): the 0.9 indicates the annual administrative % cost of management; the 10 represents the 10% of management fees on the gains above the high-water mark.  The portfolio is made by only one US ETF, plus option strategies on the US market. This style of portfolio requires a capital of 250,000US$ or equivalent in CAD and the level 4 in options negotiation. 

A short manual on Day Trading is now available on Kindle and other electronic reading platforms in French. The title is: « Le ‘Day Trading’ ou La négociation sur séance (1)  », written by Charles K. Langford and Audrey Parent Thibeault.

A short manual on the put/call ratio is available on Kindle and on similar electronic reading platforms, in French. The title is: « L’antagonisme entre les options put et call: l’analyse du put/call ratio », written by Charles K. Langford and Laurence P. Darveau.   

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

The English version is available on all reading softwares like Kindle, Kobo, iBook, etc. Its title is “The Trend Hunter”.

The website of Charles K. Langford Inc. is: www.charlesklangford.com 

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Market Risk (Systematic Risk)

The market ((S&P500 Index and its derivatives) ended the week higher at 3,007.98 points compared to the previous week at 2,926.46 points, up 0.9%. The reasons for this are an improved relationship between China and the U.S. on their commercial dispute. Almost all sectors were up: mainly the financial up 3.9%, energy up 3.4% and materials up 3.3%. The real estate was down 3.2%. On Thursday the Index reached a high, higher than the high made on July 26.   

On the 30th of August, we had a live trading seminar in front of investors at Disnat. Here are the results of the seminar:

The following chart of the SPY shows a bullish bias; but the trend will be more convincing if the price reaches 304 points, that is an “X” higher than the highest ”X” of the previous column of “X”s.

The Langford Management

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

In the USD accounts, we have cash in the form of FLOT, MINT and NEAR. In the CAD accounts,  we use PSA or it's equivalents. On 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 on the upward momentum. In accounts that allow futures market trading, we have futures contracts in long positions on stock indexes.

Our portfolio management is always ad hoc, for each client but we also offer five standardized mini-portfolios for clients that are 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, this week we have middle- and long-term buy signals on the following stocks and ETFs. 

TREND FOLLOWING

	Middle-term bullish	Long-term bullish
Canadian Market	ABM.V DGO.V SCOT.V WELL.V AIM.TO BIR.TO CIA.TO CMMC.TO COP.TO ECN.TO EIT/UN.TO FM.TO HGD.TO KEL.TO LGO.TO NGD.TO RCI/B.TO SGY.TO SNC.TO SRU/UN.TO TCN.TO TKO.TO TOU.TO VET.TO WFT.TO	DWS.V SCOT.V VHI.V CIA.TO COP.TO CPG.TO CVE.TO FEC.TO FIE.TO MFC.TO POW.TO PXT.TO RY.TO TOS.TO VLE.TO XEF.TO

About Options

Investors that believe the current Canadian market offers interesting bullish opportunities, they can buy the call SNC (stock closed Friday at $21.00) October18/19.00 @ $2.90 whose delta is 0.73 and gamma 0.08 (accelerator of delta). This call will offer a profit of 73% 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.