Citron out with a short note on $NVDA…but his target is approximately where the stock was less than ten trading days ago. He thinks the stock will be back at $90 sometime in 2017.
I wouldn’t be shock if $NVDA was back at $90 sometime in the next few months either. That’s part of why we took a disciplined approach and trimmed some of our long last week.
Back to Citron, I shorted $VRX a few weeks before Citron came out with their short bet on $VRX and have had respect for some of their short calls on stocks like VRX, which is down more than 90% since I shorted it. But him coming out with a short-term swing trade based on a valuation difference of 15%. That seems silly — the stock market can’t pinpoint valuations of any particular growth stock to a 15% margin of error.
Here are just a few comments are subscribers are sharing about the post-Santa Claus rally and ringing in the New Year market-wise in the Chat Room.
- Post Christmas blues, no more presents to open. OK, right or wrong, I always think of this time of year as an inflection point after seeing enough of them. There seems reason for a post new year hiccup surprise like last year …not as deep. Many are still looking for an opportunity in?
- Last year, we ended the so-called Santa Claus rally time slightly down. We entered the new year with red futures and more the 10% decline, not that we base our decisions on that but it is something I am hedged for just in case.
- A little more cash / hedge in the next couple days for me. Holidays, even weekends, during controversy can be a catalyst.
- The market is going up. We can hedge but make hay while the sun shines.
Be sure to join me during our last Q&A for 2016. Be sure to join me today at 2:00 p.m. EST for the live Q&A in the Chat Room. If you can’t join me live, you can email your questions to support@tradingwithcody.com (or just hit reply on this email), and I’ll be sure to get them answered.