Thursday, January 30, 2020

Thursday 01/30/2020

This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start.

I start the month with $214.98 to invest and that will be my self-imposed trading limit for the whole month. 

     $214.98 x 2% = $4.30 profit needed.

     $214.98 self-imposed January trading limit.
    -$   8.48 invested 2 WPG @ $4.24
    -$ 61.60 invested 1 VZ @ $61.60  ($0.61 payable 02/03
    -$ 35.10 invested 2 CXW @ $17.55  ($0.44 x 2 paid 1/15)
    -$ 45.75 invested 1 HP @ $45.75 (ex-date 02/07)
    -$ 22.80 invested 2 ETRN @ $11.40 (ex-date 02/10)
    -$ 35.25 invested 5 BRY @ $7.05
     $   6.00 balance to invest

6:50am (CST)
Enter "GTC-EXT-Limit" SELL orders
     2 WPG @ $4.40
     1 VZ @ $61.70 
     2 CXW @ $17.90 
     1 HP @ $46.75
     2 ETRN @ $11.90
     5 BRY @ $7.45

     The stock market "futures" point to a sharp decline at the opening. As I mentioned before, the end of January and February and be a  tuff market as the yearend "Santa Claus Rally" usually push the market averages higher and then reality sets in.

     Even if the VZ earnings report is the same or slightly better than expected (they report before the marker opens), price gains will be hard to come by because of the overall sentiment of the market.

     That being said, we like dividend paying stocks because they increase in an up market but are considered  a "safe haven" in down markets. Remember daily fluctuations in the market are normal and a "bull" (up) or a "bear" (down) market is determined by a longer term trend.

     Well VZ just reported "mixed" earning, less than the estimates but a more that the same period last year. Growth is fine but the market was expecting more. 

     For a "buy and hold" investor that means the company is doing better than last year at this time but for the "short term investor" (our preferred method) not so much. 

     Do I think VZ will recover past our purchase price of $61.60, yes but the question is how soon.

Disclaimer, I am not a professional.

your comments are welcome and appreciated.

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