On 9/1, twenty-one shares of Exxon Mobil (XOM) were purchased at $94, totaling $1,974 in stock, and $46.75 of cash was left over for a grand total of $2,020.75. On Friday, the shares were sold for $88.22 leaving a grand total of $1,899.25 in cash ($1,852.50 in stock proceeds plus the cash of $46.75). In August, I started with $2,005 so this trading strategy has lost 5.3 percent over the last two months. And XOM is no longer the top stock.
For comparison, the S&P 500 exchange-traded index fund, SPY, returned negative 14.3 percent in August through September so this trading strategy continues to outperform the broader market.
The slide that started in August continued through September as economic woes in Europe and Asia have worsened. At the same time, worry over the US economy has also increased especially since the Federal Reserve continues to raise interest rates. It raised the benchmark rate 0.75 percent on September 21st.
Oil is No Longer On Top
Pharmaceutical company Eli Lilly and Company (LLY) is the new top stock. Five or six shares will be purchased today, the first trading day of October. Check back in about a month for an update.
