This Week’s Trade Exits

As soon as I exit a trade, I note that in the comments of the post where I first mentioned the trade; at the end of the week, I try to track them all in one post. These are the trades I exited this week.

Stocks or Exchange Traded Products

1. The Cooper Companies (COO). Bought at $91.10 on per share on 5/3/2024; stopped out at $84.84 per share on 7/5/2024. Loss: 6.9%

2. PulteGroup (PHM). Bought at $68.87 on 5/19/2023; stopped out at $103.11 on 7/2/2024, and also received a dividend of $1.51 that day. Profit: 52%.

Options trades

None.

Comments

Stocks or Exchange Traded Products

COO and PHM were both Portfolio Armor top names I bought as part of our core strategy, which is to buy equal dollar amounts of our top ten names, put trailing stops of 15% to 20% on them, and then replace them with current top names when we get stopped out.

Since we started this Substack, our weekly top ten names have returned 23.18% over the next six months, on average, versus 12.96% for the SPDR S&P 500 Trust (SPY), but our return on PHM exemplifies how your returns from our core strategy should be even better than the performance of our top names. The reason is that in our core strategy, we are letting our winners run, and selling our losers early.

For example, we bought PHM after it appeared in our weekly top ten names in on May 18th, 2023. Over the next six months, it was up 26.41%, but as you see above, our return of 52% on it was nearly double that, because rather than selling after six months, we held PHM for more than a year, until we were stopped out.

Options

No exits this week, but with the recent move in Tesla (TSLA), we now have three open options trades that are on track for ~200% gains (our Tesla trade, and our Carvana and SalesForce trades).

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