Thursday, November 5, 2020

Election Day Plus Two: What Am I Buying And Selling?

 On November 5th, 2020. We are at Presidential Election Day plus two. Things are settling down. I think I know the way things could go. Democratic House, Republican Senate and a toss up for the Presidency.

A sketch drawing of a bulls head. colored red white and blue

Well maybe the image to the right will give you a clue. Yeah. I am a boring bull. Whoever wins the final presidential vote, things won't change much. President Trump, look at the last four years. Former Vice President Biden, look back at the last four years and imagine less tweets,

The truth form me, in my opinion, is that politicians create noise in the markets. Good for futures traders and day trading pundits. But for me. I look for more value and long term buys.

What am I selling these days. Nothing.

Encyclopaedia of Covered Calls (amazon affiliate)In my M1 account I have been buying, Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Next Era Energy (NEE)  and McDonalds (MCD) 

I added to my Apple at the $108 mark. I was just too tempted and we have seen a little bounce from last week. I think the major part of the post sales sell off is gone. I also wanted to get in before the ex dividend date came into play as Apple and Microsoft both pay a dividend in the next couple of weeks.

Amazon was just too attractive at under $3,000.   Next Era Energy is attractive as an alternative energy play. They have done well in the past few years, if the Democratic push on green energy grows it can do well. Even if the deniers of global warming win the skirmishes Next Era Energy is well place just as a utility with a growing population in its main region of the South East UU.S.

In my ROTH IRA. I am buying stock in QYLD. QYLD being a exchange traded fund which sells covered calls in the NASDAQ 100. I began buying it several months ago. It does well in times of fluctuating markets. Its a play for the next few months. There will be lots of volatility as the new presidency begins. Even if  you look forward to less Twitter action, new presidential brooms cause a little uncertainty in their first few months.

I am also investing in the financial sector exchange traded fund *XLF) Banks have been hit this year and the stock is below my $25.00 average cost. Time to add some more I think while I can. As the economy opens up toward the end of 2021, I think, Banks will come back to life, with XLF I don't have the worry of picking the right banks. I just have a lot of banks and insurance plays.

In general I am playing long term defensive, I believe. This post is not investment advice. I am only setting out my own personal strategy. You should look on this only as entertainment, or someones crazy ravings.  My plan is only taking into account my circumstances, you should talk to a qualified investment advisor before making any investments for yourself.

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