Here’s the transcript to this week’s Live Q&A Chat.
Q. @CodyWillard with Europe doing better $DAX Italy and other markets at multi or all time hi’s why is the euro plummeting at such a rapid pace and the dollar going parabolic in swift fashion vs slow and methodical?
A. “Why?” Big question. Recall that over the last few years, I’ve repeatedly said that “Most scenarios favor the US Dollar vs other currencies in a currency war.” That is still the case. But the magnitude and speed of this Euro vs Dollar collapse is still stunning. There’s obviously a flight-to-safety aspect to it and many, many other factors.
Q. Interesting discussion of USD/Euro affect – http://finance.yahoo.com/news/…
A. The $EURUSD Euro collapse against the dollar is definitely all the rage today and is definitely something to watch for as a catalyst for our $XLF puts also, as you just know there are banks out there on the wrong side of this move.
Q. FB has been range bound as you know for several months now and has been up near it’s high recently. Why do you think this and what could be a near term catalyst to propel this stock upward?
A. My theory has been that once $FB breaks $80 that it will run to $90 before it sees $70, but more importantly, looking out over the next five years, I think $FB can double or more. $FB was stuck in the 20s even longer than its been stuck in the $70s. I’ve been long$FB since the low $20s and teens.
Q. In Cody’s email today, is there something missing that goes with the word “LINK”?
A. Yes, here’s the link I meant to put in there: https://www.scutify.com/scuttl…
Q. I am looking to scale in to a little more Apple to add to what I already own. I have been waiting to see it hit around 120 give or take a bit. Do you feel that is a good point to scale in to a bit more common?
A. If you’re looking to add to $AAPL, I’d do maybe a half tranche now and then hopefully you can get the second half of that tranche in a few days closer to $120. Tough to gauge near-term, as seems to be today’s theme in the chat!
Q. I probably feel I should just pick up the phone and call you today. I feel honored to have your attention but it is a bit strange so I’ll take a minute to just thank you for all the help. i have done well following you and I take what you say very seriously. I have learned a lot and thank you for that. What about SNDK. Wait for it to pull back again after today’s upgrade. I have gone to pull the trigger twice at 79 a small bit but didn’t….a little here at this price and more around 79?
A. Similar strategy for adding to $SNDK as I laid out for you with $AAPL — I’d do maybe a half tranche in $SNDK now and then hopefully you can get the second half of that tranche in a few days closer to $80. And thanks for the kind words! It’s not easy being a successful investor and trader and we all learn from each other.
Q. There is talk the apple watch has 18hr batter life as a stand along watch. if U text, use apps and the like the hrs of usage drop in 1/2 if not more? Have u heard this?
A. Yea, I’ve heard that. Using a smartphone and watching videos and sending emails and listening to music cuts its battery time down in half or more too. You can expect the Apple Watch to follow the laws of physics despite being an Apple product! 😉
Q. Any thoughts on BIDU as a long term investment. I bought some at 198.00 after their last earnings. It has not gone below that and seems to be going between 204-215. I thought the last earnings report was actually pretty good although some obviously didn’t think so. Thoughts?
A. I’ve long liked $BIDU and even owned it for a while a few years ago. It’s the best play on China, period, IMHO. So looking out five years, I think it’ll be much higher than its current quote. Looking out over the next five days or five weeks, I frankly have no idea for $BIDU‘s set up.
Q. Cody, I am about 50% cash at the moment. What do you think is the path of the least resistance in the coming few weeks? Do you see any imminent crash in the near future?
A. The stock markets have pulled back 5-10% from their all-time high levels a few days/weeks ago and I’m getting more bullish as it goes lower. Trying to time a short-term move in the stock market isn’t a way to successfully build your wealth over time, so I wouldn’t worry too much about the path of least resistance anyway. Just slowly scale into the best Revolutionary stocks you can find and slowly navigate these ups and downs that always happen in the markets.
Q. What’s your take on GOLD? good buy here at retest of 52 weeks lows under 1150?
A. I’ve been waiting for $GOLD to get down closer to $1100 or even 1000 before adding to my physical gold coin holdings and am starting to get interested enough in shopping for some gold coins that I’ve been on eBay pricing them this week. Not yet tho.
Q. How about some 2017 YNDX leaps, Cody?
A. Well, I’m just not buying $YNDX yet, but the leaps don’t look awful either.
Q. Even though you are not buying now, YNDX 2017 $18’s @ $2.80 make the most sense, or do you see another that you like better?
A. Maybe even go out a bit further and/or look out to $19/20 strike prices.
Q. Any thoughts on the recent decline in LNN over the last couple of weeks? Earnings are due out before the end of this month.
A. I was working on $LNN this weekend — I’m sick of it being here in the $80s. We’ve owned it for a long time now and have about 40% gains in the small common stock position we own but I’m not sure there aren’t better places in the Water Revolution for us to look.
Q. Hi Cody, BKS is rallying today and has regained almost all its decline from yesterday, albeit on much lighter volume. Are we getting another opportunity; would you look to short more? At what level?
A. $BKS is still down more than a dollar or 4% from its close before its earnings report, and is down 20% in a straight line from the highs a couple weeks ago. I personally shorted more $BKS when it was up near $26 or $27 a couple weeks ago as noted in the Trading Alert at the time. Holding it steady for now.
Q. I don’t want to be too picky but you are a mite too generous with your calculations. From the$26.22 high of a couple weeks ago to the $22.30 intraday low yesterday BKS was down 15%; from that high to the current $23.70 price today is about 10%, not the 20% you cite.
A. Fair enough, I was obviously just going off the top of my head with those numbers as I typed, but the gist of my post remains the same.
Q. Any thoughts about revisiting INVN? Do they have any product(s) in the new Apple watch?
A. I’m done with $INVN‘s management and won’t be back in that stock anytime soon — don’t know yet if they’re in the Apple Watch, but I kinda doubt it.
Q. Cody, holdings are a little heavy on the xlf puts (nothing crazy but heavy), what are your thoughts going into the tests or is the bigger play the currency wars?
A. Yea, the $XLFs are mostly a hedge for our broader net long exposure in the event this market does pullback big at some point…and they’ve got the currency wars and energy collapse as potential catalysts too. The “Tests” if you’re referring to the Fed’s stress tests of the big banks is not even on my radar other than knowing that the more confidence the FED has in these banks’ balance sheets, the less we should.
Q. Cody, A few weeks ago I asked about IPHI and I thought you said that you would look at it but I don’t recall ever seeing anything. Did I miss something?
A. $IPHI‘s description: “Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. Its analog and mixed signal semiconductor solutions offer high signal integrity at data speeds while reducing system power consumption.” As you know, I’ve been saying that I’ve got plenty of tech exposure right now and even deeper, I’d rather own $INTC, $SYNAand/or $SNDK as my chip exposure. IPHI ain’t bad, but it’s not for me.
All right, thanks folks! Song of the day, for no good reason other than it’s a great song – Kashmir – Led Zeppelin.