Pinnacle Activity Ticker
S&P 500 Volatility Increase Secures May's Stock Challenge For Scoby13
May’s Stock Challenge has concluded...phewf!
To say May 2012 was an ugly month for investors would be a gross understatement. The month of May kicked nearly every investor’s butt. Let’s put it this way: Over 96% of all the participants in May’s Stock Challenge finished in negative territory. There were 191 Pinnacle members who participated in May’s Stock Challenge and only 6 managed to finish in positive territory! This is the second worst community result in the history of Pinnacle’s Stock Challenge - which has been around for 5 years.
The only other Stock Challenge which had a worse overall result was in September of 2011. During that horrific month only two members finished in positive territory, which saw wedge4321 win in rather lackluster fashion. Click here to view those results if you need to feel a bit better about this month’s performance.
Moving onto what little positives there were in May’s Stock Challenge:
In a month which saw every major exchange get clobbered, commodities continue their losing streak and the US dollar embark on a record rally, anyone who was able show a 41.01% return through equities in that period deserves their kudos. Scoby13, a member of the Pinnacle community for nearly 2 years, came to play in May’s Stock Challenge. The Oakville native made two perfectly timed selections for this month’s Stock Challenge. Scoby13 selected two ETF’s that focused solely on the short-term volatility of the S&P - brilliantly timed...S&P 500 volatility picked up almost right on cue at the start of the month and held strong throughout, securing the first Stock Challenge victory for Scoby13.
Despite a scare on May 30th, when the community ‘whiz kid’ (GlobalInvestor) crept up momentarily and took top spot, Scoby13 had this one in the bag almost the entire time. His two selections were the iPath S&P 500 VIX Short-term Futures ETF (VXX:TSX) and the Horizons BetaPro S&P500 VIX Short-Term Future ETF (HVU:TSX). Both ETF’s basically mirror each other. If volatility rises on the S&P, they both increase in value. This was an all-in bet by Scoby13 that volatility was going to skyrocket in May and he was bang on. Who needs diversification when you can time the market this well!
As mentioned, the community ‘whiz kid’ (GlobalInvestor - click here to read all about him) momentarily gave Scoby13 a scare on the second last day of the Stock Challenge. One of GlobalInvestor’s selections in May, Africa Oil (AOI:TSXV), continued its ascent from $1.50 a few months ago to a peak this month of $11.25. The run this oil and gas company has been on is nothing short of astounding considering the tough market we’ve experienced for the last couple months. However, despite Africa Oil Corp’s continued run, GlobalInvestor’s second selection, Ithaca Energy (IAE:TSX), couldn’t keep pace and dropped from nearly $3 at the start of May to close the month at $1.90. All things considered, GlobalInvestor, the perennial contender and best performing challenger in 2012, finished with a respectable 28.80% return for the month. So far in 2012, GlobalInvestor has a first, second, third and fifth place finish; impressive to say the least.
Investors will be quick to put May behind them as we head into the summer months. There are still many uncertainties looming over the market and June should prove to be a very interesting and volatile month for stocks.
Congratulation to our new Stock Challenge Champion, Scoby13 - it was a well deserved victory with two perfectly timed selections. This is Scoby13’s first Stock Challenge Victory and we welcome the new champ as our 51st member in the Stock Stars Hall of Fame!
In addition to becoming an inductee into our Hall of Fame, Scoby13 receives 1000 reputation points to his Pinnacle Profile along with the highly coveted Stock Star. As well, Scoby13 will receive our Stock Challenge ‘Winner’s Wear’ to ensure his victory is recognized by all his friends back home. Our champions receive the winner’s only Pinnacle Package - which includes the finest of garments fit for a champion: The Stock Challenge Champ Hoodie and a Pinnacle Digest dri-fit golf shirt (for those summer days on the links). Wear them with pride Scoby13!
* Click here to get a sneak peek at Scoby13’s selection for June’s Stock Challenge.
All the best with your investments,
May’s Stock Challenge Statistics:
Highest Return: 41..01%
Lowest Return: -59.44%
Average Return: - 11.01%