Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
- 75,066
- 147,364
- 2
- 1
Investing General Discussion
- Thread starter Furious
- Start date
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
- 75,066
- 147,364
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,438
- 107,469
Wow the investing threads got so quiet once the stonks turned south.
Over the last couple of days I put about half of my free cash back to work long-term as we hit correction territory and started breaching 100 DMA on the QQQs. Keep in mind a lot of the outflows from Tech were coming from a "relatively" small number of companies (as you can see by the number of stocks making new 52 highs and the advancers to decliners). Big tech has such an outsized impact on the indexes that you can take advantage of how their drops pull down the entire index and price it at a discount.
This I did the last couple of days:
Added to AAPL
Added to NVDA
Added to CRM
Added to PYPL
Added to HD
Started and added to a long position in FTEC
Started and added to a long position in QQQJ
Started and added to a long position in WMT
The position in FTEC also effectively adds to all my tech positions ( CRM, PYPL, NVDA, V, AAPL and MSFT) especially AAPL and MSFT (22% of every dollar is in AAPL and 16% of every dollar is in MSFT).
Back in early Dec, based on the my analysis, I dumped all my ETFs to cash as I felt a correction was due. At the time I sold out the QQQ was about $309. Using that cash to write puts while I waited, I effectively made what would have been just over $11 a share (or about 3.6%) the last 3 months. Now I have put that cash back into long-term ETFs in the $300 range of the QQQ. Effectively this worked out to about a $20 a share profit (about 6.5%) in 3 months. I wasn't timing the market, I saw the QQQ 23% above the 200 DMA and historically it corrects in this range. I used the 100 DMA as my re-entry level.
The other thing to make note of is that this hasn't been a "crash". It was a rotation.
Blazin
explained it much better than I can a week or two ago, but simply put rising interest rates are negatively correlated to growth stock. So what we have been seeing is a move out of growth/big tech and into value. Look at this chart of QQQ vs VTV (Vanguard Value ETF) over the last 10 days. This is a 10% swing in return. This is one reason I diversify my portfolio with Boomer stocks to contrast my tech positions.
The 30-day chart shows us where the divergence began. on 2/17. In 30 days there has been an effective 15% swing in return value to growth.
Over the last couple of days I put about half of my free cash back to work long-term as we hit correction territory and started breaching 100 DMA on the QQQs. Keep in mind a lot of the outflows from Tech were coming from a "relatively" small number of companies (as you can see by the number of stocks making new 52 highs and the advancers to decliners). Big tech has such an outsized impact on the indexes that you can take advantage of how their drops pull down the entire index and price it at a discount.
This I did the last couple of days:
Added to AAPL
Added to NVDA
Added to CRM
Added to PYPL
Added to HD
Started and added to a long position in FTEC
Started and added to a long position in QQQJ
Started and added to a long position in WMT
The position in FTEC also effectively adds to all my tech positions ( CRM, PYPL, NVDA, V, AAPL and MSFT) especially AAPL and MSFT (22% of every dollar is in AAPL and 16% of every dollar is in MSFT).
Back in early Dec, based on the my analysis, I dumped all my ETFs to cash as I felt a correction was due. At the time I sold out the QQQ was about $309. Using that cash to write puts while I waited, I effectively made what would have been just over $11 a share (or about 3.6%) the last 3 months. Now I have put that cash back into long-term ETFs in the $300 range of the QQQ. Effectively this worked out to about a $20 a share profit (about 6.5%) in 3 months. I wasn't timing the market, I saw the QQQ 23% above the 200 DMA and historically it corrects in this range. I used the 100 DMA as my re-entry level.
The other thing to make note of is that this hasn't been a "crash". It was a rotation.
Blazin
explained it much better than I can a week or two ago, but simply put rising interest rates are negatively correlated to growth stock. So what we have been seeing is a move out of growth/big tech and into value. Look at this chart of QQQ vs VTV (Vanguard Value ETF) over the last 10 days. This is a 10% swing in return. This is one reason I diversify my portfolio with Boomer stocks to contrast my tech positions.The 30-day chart shows us where the divergence began. on 2/17. In 30 days there has been an effective 15% swing in return value to growth.
- 2
- 1
- 2,716
- 2,996
I was noticing this too. Just not much to say when you are out of cash and waiting for a recovery. Becomes a stoic waiting game.
- 1
Ravishing
Uninspiring Title
- 8,452
- 3,577
Wow the investing threads got so quiet once the stonks turned south.
Over the last couple of days I put about half of my free cash back to work long-term as we hit correction territory and started breaching 100 DMA on the QQQs. Keep in mind a lot of the outflows from Tech were coming from a "relatively" small number of companies (as you can see by the number of stocks making new 52 highs and the advancers to decliners). Big tech has such an outsized impact on the indexes that you can take advantage of how their drops pull down the entire index and price it at a discount.
This I did the last couple of days:
Added to AAPL
Added to NVDA
Added to CRM
Added to PYPL
Added to HD
Started and added to a long position in FTEC
Started and added to a long position in QQQJ
Started and added to a long position in WMT
The position in FTEC also effectively adds to all my tech positions ( CRM, PYPL, NVDA, V, AAPL and MSFT) especially AAPL and MSFT (22% of every dollar is in AAPL and 16% of every dollar is in MSFT).
Back in early Dec, based on the my analysis, I dumped all my ETFs to cash as I felt a correction was due. At the time I sold out the QQQ was about $309. Using that cash to write puts while I waited, I effectively made what would have been just over $11 a share (or about 3.6%) the last 3 months. Now I have put that cash back into long-term ETFs in the $300 range of the QQQ. Effectively this worked out to about a $20 a share profit (about 6.5%) in 3 months. I wasn't timing the market, I saw the QQQ 23% above the 200 DMA and historically it corrects in this range. I used the 100 DMA as my re-entry level.
The other thing to make note of is that this hasn't been a "crash". It was a rotation.
View attachment 340870
The 30-day chart shows us where the divergence began. on 2/17. In 30 days there has been an effective 15% swing in return value to growth.
View attachment 340871
I've been swinging PLTR, X, AMC, and I did a small move on GME.
I missed EYES, that thing went crazy AH.
- 1
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,438
- 107,469
The market is a game of patience. Its why I use technicals to set price points for me. Using those price points is what makes me be patient.
Too busy buying the Tesla dip. I see it bouncing back to 800 within 3 weeks. I’m sure others are hanging around in a panic.
I think the fair weather fans of stocks are also getting caught up in the digital currency pick up. The Wife had just told me “mine that shit. Why did you stop back in 2018. Just get it done.” So my free flow cash is going into a few miners.
I think the fair weather fans of stocks are also getting caught up in the digital currency pick up. The Wife had just told me “mine that shit. Why did you stop back in 2018. Just get it done.” So my free flow cash is going into a few miners.
- 1
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,438
- 107,469
- 3
- 2
Ravishing
Uninspiring Title
- 8,452
- 3,577
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,438
- 107,469
When its all said and done, I think its going to be one of my best pick-ups last year over the long haul.
- 1
On a half serious note HCMC will win or get a settlement out of Phillip Morris. The law firm is a pretty aggressive bunch of Infringement pit bulls. Threw 4K at it when it dipped hard last week. I need HCMC to hit a dollar!
Small diamondchip hands here.
Attachments
Mist
Eeyore Enthusiast
- 30,362
- 22,121
Arden
Blackwing Lair Raider
- 2,646
- 1,940
Should dip more before any news of a settlement hits. Seems like it will be summer at the earliest before anything changes. They won't even go through arb for a while. I'm going to throw some at it too, but I'm going to wait until arb gets closer.
Hateyou
Not Great, Not Terrible
- 16,265
- 42,262