Trade Alert: Stocks crushed. Two nibbles and locking in profits on the AMD puts
Stocks are getting crushed with the Nasdaq down more than 3% on the day as I type this at 11:25am ET.
I spent almost an hour on the phone with a very insightful source who runs sales at one of our smaller cap Revolution Investments. Then I hung up the phone and checked the market and my text messages…
“Will we or won’t we test the October lows?”
“Are we headed for a depression?”
“I’m getting killed.”
While I’m not willing to say the market is about to bottom today or anytime soon, I do think, with those anecdotes and so panic starting to rise amongst the bulls again that it’s time to do a little opportunistic nibbling by buying back a few shares in a couple stocks that we’d been trimming at much higher prices earlier this year.
Look at these Trade Alerts from this past summer when stocks were hitting those aforementioned and now far gone all-time highs.
Trade Alert: Taking profits on 3 stocks (one full cover, two trims)
September 24, 2018
Trade Alert: Trimming some big winners near all-time highs
September 6, 2018
Trade Alert: What history and some feet-to-fire say about AMD and the markets now
August 27, 2018
Trade Alert: Two more trims AND Why cryptocurrencies like bitcoin are about to crash again
May 10, 2018
Cody back in real-time November 19, 2018 now. By the way, bitcoin and most other cryptocurrencies hit new lows again this week too. I’m not ready to make any more buys in cryptos right now though.
On the other hand, now it’s probably time to do some opposite of those stock trades.
I’m going to sell the last of my AMD puts with it here close to $19 and lock in those profits that I’d bought on August 27. I’m going to buy back another 1/2 of the shares of PANW at $162 that I’d sold when it was above $230 on September 6. And I’m going to buy back about 1/3 of the shares of NVDA here with it under $150 that I’d trimmed when I sold 10% of my NVDA shares at $260 on May 10 and I’d sold another 5% of my NVDA shares at $270 on September 6.
That’s it for now. Not drawing any lines in the sand. Since we don’t have to.
