Added to my Starbucks Position $SBUX

Not a high yielder but one I do trade around a core position. I’ve really been waiting on Starbucks to break out. I’m long around $54.30 range more shares than I want to own. Plan is to sell half at $57. Looking for $2.25 profit.


Price is trending above 20 day moving average. The 5 ema has crossed over the 20 dma. Stop loss in $52.25 zone.

Lowered Leverage

Part of any good trading strategy includes risk control. I have gone back and forth on this and still not sure best use of leverage. CEFL is highly leveraged and carries with it its own proprietor risk because of how UBS achieves its 2x leverage goals. The YYY has risk as well. The closed end funds that make up the index take on risk as well to achieve the 8% yield. Risk is just part of this game.

I qualified on 8/28/17 for $.13 share dividend with YYY. After this dividend qualification I rolled out funds (few days later) into CEFL to capture its ex-dividend day on 9/12/17. Soon once I captured that dividend (again few days later) once price recovered from ex-dividend date drop I sold half my CEFL position to downsize my leverage risk and rolled those funds back into YYY to capture this upcoming ex-dividend on 28th of September.

It is important to understand my long term goal is to create a growing stream of income. I am using leverage to do this but I want to always beware that leverage cuts both ways. I would only roll funds into CEFL like I did when my trading strategy that I call The Money Flow is giving me a buy signal. That puts the wind at my back so to speak. Rising tides lift all boats.

As of this morning I am full long YYY and CEFL

Fully long BIZD and BDCL.

Current Expected Yearly Income: $7,927 or $660 a month. Long ways from my $2000 goal but getting closer each month.

 

#Gold Update

I’ve traded gold pretty spot on for about a year now using my 5/20 money flow system. It is signaling a sell signal as of today. I took profit last week following my system around $127 range. Maybe gold holds strong here and moves sideways…but my system says trend has turned bearish. I wouldn’t be looking to add to any gold positions here. See chart below: the BLUE circles are the turning points in the trend.

gld91917

 

No rate increase

Well Janet left rates unchanged. Market seem fine with that. I’m bored of the entire conversation. Who cares… unless u have a lot of debt does it matter? The people who are effected the most seem to care the least. 

CEFL – 17% continues to churn out cash. I am still on buy signal so holding full position. 

BDCL – 15% moving at snails pace but still on buy signal

MORL – 20% is on a sell signal so half position is prudent.

SHMD – 17% is newest 2x income fund it’s on sell signal. My position is small I am going to build it over time to 500 shares on sell and 1000 on buy. 

Current balance is $69,100 with annual income of $11,500 or 16.5% yield on the portfolio that’s appreciated 11.82% YTD