Week 15 2012 Performance.....Market Action Galore

For only the second time all year we experienced a down week in the DWCM fund.  Going into Friday's trading we were just about breakeven and then the wheels fell off again.  This week by far saw the most activity within the DWCM fund.  As predicted the markets opened decidedly down on Monday coming off the disappointing jobs report the previous Friday and just continued the downward pressure through Tuesday.  Then we saw back to back up days as people came into the market to buy the dip only to end Friday down over 1%.


Even on those down days the markets tried to turn the corner in the afternoon as they have been accustomed to doing but the selling pressure was just too much.  As I mentioned we had lined up about 15 trades going into Monday anticipating the sell off but it wasn't until the declines on Tuesday that our orders began to be filled.  And then Friday we saw additional orders fulfilled.  Below is a summary of what we added


Long Positions

• Paychex  $PAYX, added to previous position
• CME Group  $CME
• Public Storage  $PSA
• TC Pipelines LP  $TCP
• Eli Lilly   $LLY

Option Positions

• FedEx  $FDX
• Activision Blizzard  $ATVI
• Apple  $AAPL, added two additional option position to previous position

Our cash position now sits at 46.7% the lowest it has ever been since we started managing the fund over a year ago while our long positions accounts for 29.6% of the portfolio again the highest it has ever been.  It's not that I have suddenly become super bullish far from it.  The companies that we have invested in have been on our radar screen for some time and finally reached a price that we found attractive.  

We can't expect the equity markets to head up in a virtual straight line as they have since the October 2011 lows.  Although we have had some bouncy days  like we have had this week those days have typically shown to be a good entry point into the market. 

Although we finished down 0.8% this week our performance was still 1% or better than most of the major equity markets.  Overall performance for the year is up 23.5% beating the major equity markets by an even wider margin.

The Week Ahead

The upcoming week is light from an economic data standpoint but what will really be telling is how the markets open up on Monday following the selloff on Friday.  Will buyers come in and continue to buy the dips or will the selloff continue and have markets look for further consolidation and test some technical levels?

• Mon -  Empire State Mfg Survey,  Business Inventories,  Housing Market Index
• Tue -  Housing Starts,  Industrial Production 
• Wed - N/A
• Thu -  Existing Home Sales,  Philadelphia Fed Survey,  Leading Indicators
• Fri - N/A

DreamWorks Capital Management Updates

A few weeks ago I had noted how excited we were that DWCM would be hosting our first seminar here in the metro Detroit area.  I am pleased to announce that we will be partnering with The Community House a non-profit organization located in Birmingham, MI to host our seminar "401k & 403b Rollovers, You have Options" on Monday June 18th.  The event is free and you can register by calling TCH at 248-644-5832 or you can email me directly at pfenner@dwcmllc.com.  We hope that you will consider this great event and learn more about the services we offer here at DWCM.

Have a great week.