Seeing What is Difficult to See

Sometimes the right tool can help you see something you otherwise cannot easily see. For example, this week we had a new roof installed on our home. After the roofers completed the work, I was able to fly my drone up to examine the roof and to verify that the rain gutters had been cleaned of roofing debris. Another tool in my workshop makes it possible for me to “see” inside the walls to locate the 2×4 studs if I want to mount something heavy on the wall.

Fidelity Active Trader Pro

Fidelity Active Trader Pro Heat Maps

Fidelity Investments offers a tool that I use more frequently than the Fidelity website. That tool is Active Trader Pro. ATP is very useful for entering trades using the GUI interface. It is also very easy to enter options trades using the tool ATP is also helpful to explore the relative size of each investment in an account and the day’s gain/loss in each position. This can be helpful to spot opportunities. On a day when the market is up, positions that appear as red are down. This might indicate a buying opportunity. If the position is green, it could be a good time to look at selling an option on that position.

IRA Account Observations

Wayne’s IRA Heat Map in Fidelity Active Trader Pro

The largest of our accounts at Fidelity is my traditional IRA. In today’s heat map I can easily see what I already know: VYM is my largest holding. But I can also see that of the top largest investments, only one was down at the time I looked at the heat map. That position was Ford.

I can also see that many of the beaten-down technology investments were bouncing up. These included STX, TXN, AVGO, AMD, and QCOM. Notice that QCOM is a smaller investment of the total, but that it was up $2,566 on the day. In other words, it had a dramatic percentage gain. QCOM was up because, “The semiconductor manufacturer on Wednesday reported fiscal Q2 non-GAAP earnings of $3.21 per share, up on the year from $1.90 per share. Analysts polled by Capital IQ called for $2.92.” In other words, the news was very, very good.

ROTH IRA Account Observations

Wayne’s ROTH IRA Heat Map in Fidelity Active Trader Pro

My ROTH IRA does not mirror my traditional IRA. There are good reasons for this. First of all, the income I receive in my ROTH is tax-free forever. Therefore, I can afford to choose investments that provide both the best opportunities for capital gains and dividends. In this heat map, it would appear that ABBV is performing poorly. For today that is true. But the 500 shares of ABBV used to be in my traditional IRA. I moved them to my ROTH in April 2019.

At that time the shares were trading for $80 per share due to concerns about the business. The shares were worth less than I had paid for them, in the eyes of investors at that time. So, I was able to move them to my ROTH and pay income taxes on the reduced value of the shares. Since then, I have received almost $7,000 in tax-free dividends and even more income from selling ABBV covered call options. Furthermore, the shares are now trading at $156. So I have a capital gain, at this point, of 67% in just three years.

The other thing I can quickly see in the heat map is that many of the larger positions pay hefty dividends and growing dividends. This includes ABBV, FNF, MAIN, PFE, CSWC, and ARCC. However, the most important eye-catching position is ASX. That position was up $1,703 at the time the image was taken and then continued to rise so that my shares increased in value by $1,846 on the day. This is noteworthy because the value of this position had dropped over 20% in the last 40 days, and it recovered more than half of that in a single day. Patience can pay for the investor who is not swayed by fearful traders.

Do you want ATP in your Toolbox?

If so, here is a link.