May 11, 2019
Volatility skyrocketed this week on Wall Street, as the major indices experienced their deepest correction of the year. The volatile dip was caused by the renewed trade worries that took investors by surprise following weeks of positive reports regarding the negotiations with China. The benchmarks all hit their lowest levels in more than a month, while Treasury yields plummeted as well, and risk assets were under pressure across the globe. We saw the wildest intraday swings in stocks since December, as the often-contradicting headlines caused sudden shifts in investor sentiment throughout the week. On Friday, the President confirmed that the talks will continue, which was enough to cause a short squeeze ahead of the weekend.
After another roller coaster day in the stock market on Friday, the GorillaTrades portfolio ended much stronger, as a vast majority of GorillaPicks finished higher. Of the GorillaPicks that fell, only two lost more than 0.5%; VFC Corp. (VFC) and Assured Guaranty Ltd. (AGO) dropped 1.2% and 4.2%, respectively. There were two casualties early in the session, as Symantec Corp. (SYMC) and O’Reilly Automotive Inc. (ORLY) each stopped out. However, ORLY produced a more than 10% profit, while SYMC was only the second GorillaPick to get hit hard during this earnings season. On the other hand, six different GorillaPicks gained 2%-3% each. Thus, 44 of the 52 confirmed GorillaPicks in the GorillaTrades portfolio now hold unrealized gains. And this number is deceiving because six of the eight confirmed GorillaPicks that are lower are down by just 2%-3% or less. Federated Investors Inc. (FII) and NextEra Energy Inc. (NEE) hold 21% gains each, while Broadcom Inc. (AVGO), Planet Fitness Inc. (PLNT), and Coca-Cola European Partners PLC (CCEP) lead the portfolio with 27% gains each. In addition, 33 of the GorillaPicks have achieved their first target!