Let’s rock n roll.Time for this week’s Live Q&A Chat, ask me anything.
Q. Hi Cody. Any renewed interest in $P puts?
A. Not yet on the $P puts, with the Beats deal and music “hot” right now, I don’t like the near-term risk/reward on the $P downside for now.
Q. Cody any month and strike ideas on $BKS puts?
A. Not yet on the $BKS puts either. I want to see it spike one more time before loading up on the puts. Just a $BKS short for now.
Q. Why do you rate $YELP a 9? Anything new coming down the pipe or is this Yelp’s moment?
A. I just recently wrote a bunch of analysis on $YELP. Not sure what you’re asking. https://tradingwithcody.com/2014/05/14/cody-kiss-tell-yelp-analysis-drone-catalysts-and-a-pic-of-my-baby-lobo-and-me/ https://tradingwithcody.com/?s=yelp Let me know if those help.
Q. Is it time to long some $GLD? looks like the gold is bottoming.
A. Remember that if you’re going to buy $GLD that it is always a short-to-mid-term. Only physical gold coins and bullion are actually own-able for the long-term in regards to the metals. That said, I do think $GLD/gold looks ready to pop near-term and make a run towards $1500 or so by year end. Not a trade I’m making or a move I’m trying to game though.
Q. Cody, how big of a selloff are you expecting in nazz??
A. I’m not expecting much of a sell-off in the Nasdaq right now. Path of least resistance seems higher for the near-term for now at least. Bubble blowing bull market continues.
Q. How long do you think we have before a meaningful correction of 25% or more on the broader indices? I definitely think the bulls should be scared, at least I am. I know that’s contrarian, but maybe we’ve become tuned to think like that, from your perspectives and our experience of course.
A. The bulls are not scared and the bears are bulls too now. When, when when will the next correction come? Probably the next time war headlines or financial crisis headlines dominate the headlines. Which is the chicken and which is the egg is up for debate.
Q. Also wondering if you see any $VIX plays right now. Thanks!
A. I don’t like the $VIX set up just now either. The markets’ steadiness feels fake but that can last for a while.
Q. Are you going to buy anymore bitcoins anytime? If so do you think we will get buying opportunities soon?
A. No, I’m not buying any more bitcoins any time soon. I’ve got some from much lower levels still and I still happily accept them as payment here on TradingWithCody.com or for any of my other services, but I’m not outright buying any bitcoins these days and don’t know when or if I would again, frankly.
Q.Is $ATHN a short?
A. I got no edge for you right now on $ATHN, but as long as RomneyObamaRepublicanDemocratCare continue to throw money at our privatized profits but socialized payment medical system, I’m afraid most health-care related corporations are likely headed higher until the bubble pops some day in a few years.
Q. Cody two questions how do we buy bitcoins? Hows your research going on IoT cos? Ive found $FSL $SSNI. Are we going to see those names in a basket soon? … Guess thats 3 questions
A. I wrote an article called How to Buy Bitcoins for TWC subs a year or two ago, but I’m not sure how I’d go about doing it right now as a lot has changed since then. Sorry. IoT (Internet of Things), I think should be expressed as iOT, but what do IknowT. $TXN and $ONNN are two other names I like better for IoT than $FSL and $SSNI, but I’m still working on all the above for now.
Q. After reviewing your holdings update email a few minutes ago, I was struck with the relatively large number of holdings/positions (about 30). I have found and read that having more than 10 positions in your account makes it very difficult to really watch all of them closely. Perhaps a lot of your positions are long term and don’t need much watching while some may be short/shorter/trade positions. It would be helpful in your holdings listing if you identified your positions with a holdings time frame notation (e.g., long, intermediate, short/trade.) Thanks. Love your reasoning and insights and the deal you offer to military/veterans.
A. Unless otherwise stated, such as with the “Short-term options trades” section on the Latest Positions post, my positions are long-term in nature.
Q. You are giving $YELP the highest rating you give (ok, not 10). I did not see from that write-up why you went so positive on it. U seemed to be saying that it is a stable way to take advantage of the tech bounce back.
A. Carl, I sent you a link with dozens of recent write-ups about $YELP. I can’t replicate the details and analysis from those many articles in one quick answer here on Q&A. Read them all, please, and I bet you’ll have more than enough on YELP. https://tradingwithcody.com/2014/05/13/how-i-launched-a-hedge-fund-and-learned-to-balance-my-portfolio/ https://tradingwithcody.com/page/2/?s=yelp
Q. Combining your answers to @rkumar and @drefleury Do you mean you are nowdays more for long than for short?
A. Yes, I’ve been more long than short for the last four years since I left TV and started investing again. Will change that someday again, as I did in 2007, but not yet.
Q. Cody if you start to sense that a serious correction is coming, do you go to cash or do you ride the downturn? In other words do you try to time a serious downturn?
A. I don’t think it has to be either-or. I raise cash slowly over time as stocks go up. I put cash to work slowly over time when stock are crashed or in serious correction mode. Steady as she goes.
Comment: Thanks. That makes more sense then trying to decide whether or not “this is the big one” for example. Now I understand what steady as she goes means….
Q. Hows the drone? Found anymore new uses for it?
A. The drone is so cool and so much fun. It’s amazing how many people love it from ages of 5 to 96. You know what I did now though? I took my GoPro camera and made a custom camera holder for it that I’ve attached to my Great Pyranese’s collar. It’s a Dog’s POV! It’s awesome and funny and hilarious and very cool to watch the world from her perspective. Will start a YouTube channel for her and upload soon. Stay tuned.
Q. Drone news http://www.latimes.com/business/aerospace/la-fi-faa-bp-drone-20140609-story.html. aerovironment $AVAV is the drone company in the news link above. Its a very small company with 800M market cap. Any revolution investment opportunity in it?
A. I’ve been working on $AVAV already. Not buying it yet though. http://www.scutify.com/profiles/leader.aspx?q=codywillard&s=53975de1d36feb10589a2c90