Trading With Cody

Long-term Revolution Investments and Real-time Trades from Cody Willard

Trade Alert: Giga nibble (and remembering panic)

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I don’t think “greed” is running rampant amongst investors and traders just now, but certainly there’s a lot of complacency out there. I just want you all to think about how many different geopolitical, economic, war-escalating, Black Swan and otherwise scary things can and will be impacting yours and the markets’ psychology, emotional state and, most importantly, asset prices.

Now, not during that next panic, is the time to be preparing for the next panic. That doesn’t mean we go short or even that we get too aggressive in hedging. Heck, the next move in the stock markets could be another 5% rally. I doubt it, but I’m not trying to game that next move right now anyway.

I just know that there’s a lot of value in being patient and not feeling like stocks are infallible when they’re at all-time highs. I know that reminding you not to feel like stocks have run away from you and that you won’t ever get another (two, five, or fifty) more pitches that really will have a great risk/reward set-up to them. Remember in 2016 when we bought stocks and/or call options at every panicky low?

Trade Alert: Doing some buying as the bulls panic January 20, 2016

Trade Alert: Panicky action, buying call options on two stocks February 5, 2016

Brexit brings buying opp June 23, 2016

Trade Alert: Today’s game plan June 24, 2016

You can see some other times we’ve bought the panic over the last six years here: https://tradingwithcody.com/?s=panic
And every time we did so, it was the right trade to make, as my continued belief that we would see more Bubble-Blowing Bull Market action was correct. Buying every panicky dip won’t always be the right trade, of course. But that’s why we continually re-analyze and re-evaluate and question our premises about the political outcomes, the economy, earnings and valuations. And how they all interact together.
So look, I’m telling you that we’re going to have great pitches ahead. I’m going to be dedicated, as always, to helping you find them and act on them. And I’m also telling you there are times to be patient.
Meanwhile, I’m taking advantage of the weakness in $GIMO to add another 1/3rd-size tranche of common stock to my portfolio.  Here’s the link to my report on the stock.

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Trade Alert: Market / Fed playbook and a tranche buy
Trade Alert: Alternative energy bankruptcy flip
Trade Alert: Playing the Patriot Bankruptcy filing
Trade Alert - The best way to set up for higher rates

Filed Under: Trade Alert

Disclosure: At the time of publication, the firm in which Willard is a partner and/or Mr. Willard had positions in some of the stocks mentioned above although positions can change at any time and without notice.

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