Article / 04 October 2016 at 10:46 GMT

This is how we deal with Financials these days

Head of Equity Strategy / Saxo Bank
Denmark
  • Selling Deutsche Bank led to 5% return
  • Wells Fargo and Teva on the other hand were sold with a loss
  • JPMorgan should go up as rate increase is to come
  • Going long in Japanese exporters FANUC and Murata expecting stronger USDJPY 
By Peter Garnry

A lot of action is taking place in our SaxoStrats Model Portfolio.

As we alluded to in our morning call with clients our long positions in Wells Fargo (WFC:xnys) and Teva Pharmaceuticals (TEVA:xnys) were stopped out in yesterday’s US session. Negative sentiment in both stocks were not overcome and our bet on mean reversion was clearly not a success.

Saxo Equity Portfolio Performance
 
Managing our risk in the portfolio we have closed our long Deutsche Bank (DBK:xetr) capturing around 5% return on the overall portfolio. We believe the likelihood is quite high that the German bank will settle with the DoJ this week and hopefully around €5 billion so no further capital raise is needed. Depending on the price action we might engage in Deutsche Bank again soon.

Current Equity Portfolio (click to enlarge)
Portfolio
 
In addition we have added a long Pearson (PSON:xlon) position today betting on the stock to be repriced over the coming months. Today’s price action is a major breakout and we have initiated the trade with a stop at 765. Our long Nets (NETS:xcse) position from yesterday is performing well as the stabilization manager (Deutsche Bank) has intervened in the market post the disappointing IPO.

We entering three new long trades today. Long JPMorgan (JPM:xnys) with a stop at $65 and take profit at $75 betting on USD rates to go higher with the Fed moving in December. We are also going long Fanuc (6954:xtks) and Murata Manufacturing (6981:xtks), two Japanese exporters, as we forecast USDJPY to extend recent gains. Especially Murata may see improving earnings as the company is a supplier for Apple which is seeing gains on its new iPhone 7.

Murata CFD performance (click to enlarge)
Murata
 Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more

— Edited by Clemens Bomsdorf


Peter Garnry is head of equity strategy at Saxo Bank


04 October
AlexF AlexF
Thanks for the up-date Peter and the clearly readable portfolio (please keep thsi resulution). Got in and out of DBK as well with nice profit. What level/event would you go back in ?
04 October
ALPERT ALPERT
People dont believe these gains . Analysts always shows the gains , For example 15 days before, he said that Im long in Novob at around 310 , when the price went to 290's he sad that im short at Novob. First solar , Toll brothers and many of equities were stoped. But you couldnt see in that list. But we can see our overall portfolio down. :(
04 October
AlexF AlexF
To be honest, I am a client and very satisfied with Saxo. My point on Novo was that it has not been reduced in global stock picker and that they should make their portoflio more transparent. I have started to follow their positions and if I see what you describe I will mention it...but so far no. Re FSLR they timed it wrong, I still bought it and I am up 10%
Relevant articles for you

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail