Hi guys, let’s rock n roll. Ask me anything.
Q. Do you still think $AAPL hits 100? And $GOOG 600?
A. I don’t try to game 3-5% short-term moves in giant market cap companies which trade in the millions of shares a day. I do think $AAPL and $GOOG are still very good long-term investments that I could see becoming some of the first trillion dollar market cap companies before this bubble blowing bull market and economic cycle we are living through is over.
Q. Do you see $TWTR higher from here for the short term after that incredible earnings and looks like its because of FIFA world cup.
A. I do think there’s probably more upside in $TWTR by year-end if the broader market is strong. Remember $TWTR ran into the $70s before crashing to $30 when we bought some call options in it. I didn’t time the trade as well as I wish I had, of course #@(*&#@, but that’s not in your question anyway. As for the FIFA World Cup impact on $TWTR’s earnings, I don’t think that it should considered to be a one-off kind of impact because there are other events that will be coming along similarly, though it certainly did help the last 90 days growth for $TWTR. TWTR’s management itself did try to downplay FIFA’s impact on their great quarter: “Importantly, Twitter believes the World Cup had little impact on overall MAU growth in the quarter, citing product changes as the primary driver of user growth and engagement.”
Q. $ZU earnings next week. Do you see any potential to the upside ? Looks like any reasonably good earnings can pop this puppy.
A. I think $ZU is a trendy company and a trendy stock for now but I’d rather be short ZU for the long-term than invest in it. That said, I know my wife spent some of our hard-earned money buying products on $ZU for our baby girl, some of which are VERY cool indeed.
Q. We were just discussing how sentiment is now very negative and bearish… some would correction is already almost done – it was for certain a stealth correction. Where do you see the market in the near to mid term?
A. Great phrasing, “Stealth correction”. But technically a correction is MUCH bigger than the little 5% pullback we’ve recently had. As for calling this Stealth Correction already over, I need to get back into the groove of things a bit as I literally didn’t look at the Internet or watch any TV for the first five days of my vacation last week into this week. First day back, no sleep = little feel for the market til I get some of my routine back on. Feet to fire guess is that I think the current market pullback could get ugly before pretty, but like I said, let’s not exactly be betting our farm on that analysis today.
Q.Hello Cody; welcome back. I have bought some physical gold based on your recommendation, and I think it’s probably a good idea for the long term. Can you describe exactly you think we will eventually have to do with the physical gold we may acquire?
A. I would just picture that in a generation’s time or less, say 20-30 years ahead in the future, that all the trillions upon trillions of recognized sovereign, commercial and consumer debt that has been pumped into our economy in the last 20-30 years are going to cause a revaluation of the dollar which will also cost the dollar its place as the globe’s “reserve currency” of choice. Someday, you’ll either give your gold to your children or a charity and it’ll be worth 10x or more what you paid for as measured against the “US dollar”.
Q. Cody, I have been in Europe for a few weeks and have not been on the message board as often recently but I have two questions. With Bitcoin seeming to bottom down here around $500, should we add some? and It really feels like the drone opportunity needs another add from us into the basket. Where should we look for the next play on the drone market?
A. $BTC’s still a bet on long-term disruptive technology of its concept, but I’ve no idea about how it’ll trade near-term these days. I still accept it and own a couple, but not betting big on it right now. The Drone basket is overlapping with our broader Wearables, Robotics and Drones Revolutions and the book is almost done. Sneak peak for TradingWithCody.com subs: http://WRD40.com. Please don’t share the http://WRD40.com site with anybody yet since we are still building it and there’s lots of proprietary info and stock indices in there that are not password protected yet.
Q. Any thoughts on $TSLA for earnings? It seems like there is a ton of bullish sentiment. Since almost everyone is bullish with high expectations, do you think $TSLA may go down?
A. Good analysis in your question about the $TSLA set-up into earnings, and I agree with you. Would rather be short than long $TLSA into their earnings report tomorrow night, but I won’t trade it either way for now.
Q. Is this a near-term opportunity to acquire additional $INVN?
A. Yes, I would think a tranche buy of $INVN here isn’t a bad idea if your time horizon is more than a year or even better if you’re looking out three years.
Q. Hi, Cody: guess we’re all still dying a little death with YNDX. It’s popping a little bit today, as it does once in awhile ‘midst languishing (at least my calls) down 60% – 80% or so. What kind of a “pop” are you waiting for before you sell?
A. As I wrote last week: Maybe a $YNDX pop to $35 would get me out. “Prayers for all hurt by these conflicts. Traders seem to want to look past the impact of wars, which is unfortunately much more serious and risky to US investors than things like Greek Debt Crises. “U.S. stock futures fell Monday, as investors took in news of a deadly weekend in the Israeli-Palestinian conflict and potentially tougher sanctions from Europe against Russia in the wake of the downing of a Malaysia Airlines passenger jet.” Our Russian Yandex call options are looking increasingly like they’re not going to work out for us. We used a tiny bit of capital on call options instead of buying any common stock as a method of limiting our losses if the trade didn’t work out over the time frame we were betting on, and in which we have about another month or so.”
Scale out of your lowest strike priced $YNDX call options on even a pop to $31ish like today if you are feeling pressure from the position. Good luck. No easy answer when the trade’s been going against us as you noted.
Q. Cody, What are your thoughts/expectations for $FSLR with earnings to be reported at the beginning of next week?
A. Solar’s been very hot and demand strong in the industry for the last few months and I’d rather be long $FSLR than short it as I have been since we nailed the bottom and turned from alt-energy bear to bull two years ago.
Q. What do you think of $YELP here? Big run today up 9+% into earnings to be reported after the close.
A. $YELP is up mostly in sympathy with the $TWTR’s blowout report last night. Wouldn’t want to be buying it today in hopes that I make even more on the same move tomorrow, but I’m certainly long $YELP and certainly think there’s much more mid and long-term upside and am holding it steady.
Q. Seeing the past Gold action and $GDX action. Do you still think that the Gold is indeed heading to 1500’s into year end?
A. Haven’t seen the past week’s action in gold or $GDX as I was off grid. Still think path of least resistance for gold is higher into year end, though.
Q. Any thoughts on $AMBA struggling to stay above $30? I have a small position now but I’m trying to time my next tranche.
A. Nothing meaningful about the $30 level for $AMBA in the grand scheme of things, no? Esp as the markets have been pulling back anyway. I do think scaling into $AMBA is a good long-term investment on wearables, drones and robotics.