Apr 162016
 

Equities showed strength over the past week with the S&P 500 climbing to new highs for 2016. However, the weekly market performance continues to be choppy as indicated by five weeks in a row of alternating positive and negative performance.

The past week kicked off the start of earnings season for the first quarter. While only about five percent of S&P 500 corporations have reported, early results have been solid. Of the 24 companies that reported so far, 79% reported earnings that exceeded expectations versus 21% reporting earnings that fell below expectations. The S&P 500 opened Monday at 2050.23 and closed on Friday at 2080.73, up 30.50 or 1.49%.

Chart_041616_SPX

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May 272015
 

Today was an active trading day establishing 3 new positions and closing out one existing position. Two of the positions that I entered today may seem a bit unusual as they do not fit the typical trading pattern that I have followed since beginning this blog. After tweeting out the trades, I received several comments which prompted me to offer more detail than can be accomplished through Twitter.

SkyWest Airlines (SKYW)

CRJ700-2-1The first trade that I placed this morning was in SkyWest Airlines (SKYW). This is a company that I am intimately familiar with having been previously employed by SkyWest for nearly ten years as a pilot. It is a very conservatively managed company which has allowed it to flourish and become the top regional airline in the industry. On April 30th, it announced its first quarter results which significantly beat estimates sending the stock up by over 18%.

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