It was yet another solid week in the markets, with the Dow Jones up 1.51%, the S&P 500 rising 1.58% and the NASDAQ gaining 1.91%. The MCSI Emerging Markets Index, however, fell 0.60%.
Big gainers in your portfolio included Skyworks Solutions (SWKS), which rose 2.97%, Kinder Morgan (KMI), which gained 2.25%, and the Direxion Daily CSI 300 China A Share Bear ETF (CHAD), which climbed 1.89%.
Raise your stop in Kinder Morgan (KMI) to $17.10 to lock in at least a 10% gain in the stock.
The Chinese market was down over 3% as of this writing, which should be bullish for the Direxion Daily CSI 300 China A Share Bear ETF (CHAD).
With the U.S. stock market overbought, according to my short-term technical indicators, I expect some consolidation of the markets this week. So I am going to hold off on making a new Bull Market Alert recommendation this week.
I will also be keeping a close eye on your Phillips 66 March $80 calls (PSX160318C00080000) over this week. With increased attention on Warren Buffett and his bullish outlook on the United States after the release of his annual shareholder letter on Saturday, this position — one of Buffett’s current favorites — may rally in sympathy.
Otherwise, I look forward to seeing some of you at the MoneyShow in Orlando, Florida, this week. There is still time to receive free admission to the MoneyShow as a guest of Eagle Financial Publications and me. The show’s new venue is at Disney’s Contemporary Resort near the company’s famous theme parks. I especially encourage you to attend my presentations, as well as those of my colleagues Bryan Perry and Dr. Mark Skousen, among more than 150 other speakers who will address a range of income and growth investments. Register today.
Portfolio Update
Direxion Daily CSI 300 China A Share Bear ETF (CHAD) rose 1.89% last week. China markets fell hard last night as the Shenzhen and Shanghai indexes were off better than 3%. The weakness in the Chinese markets also continued last week as capital outflows dropped further due to the continuing decrease in manufacturing activity. China is now expected to give pink slips to 1.8 million coal and steel workers in the wake of this slowdown. CHAD remains a BUY.
Phillips 66 (PSX) dipped 1.24%. PSX Chairman and Chief Executive Officer Greg Garland will provide first-hand insight on the firm’s forward-looking plans to investors this week. Garland will speak on Thursday at the Bank of America Merrill Lynch 2016 Refining Conference. Garland’s commentary may also shed some secondary insight on the future of oil markets and pricing. PSX is a BUY.
Kinder Morgan (KMI) gained 2.25%. Stifel recently reiterated its “Buy” rating for KMI and raised its price target to $19. This price level represents a potential 7% move from last Friday’s close. Stifel also expects KMI to pay out a dividend of $0.125 per quarter this year and commented that KMI should generate excess cash flow of approximately $800 million, even after funding its organic growth projects. KMI is a BUY.
Skyworks Solutions (SWKS) rose 2.97% during its first week in the portfolio. Skyworks Solutions recently launched its new SkyOne Ultra 2.0 chip. This is essentially a microchip that simplifies global-wide device connectivity to Long-Term Evolution (LTE) broadband, increases signal power range and lowers power usage. It also accomplishes this feat within the smallest chip size in the industry, allowing manufacturers to conserve precious space within devices. SWKS is a BUY.
