Trade Alert: Market’s Greed Is Back (And Getting Out Of PYPL)

If you were in pain at the recent lows when the markets were in free fall, now is the time to consider doing some trimming and some catching of your breath and making sure that you’re not too overly long and exposed to this now probably overbought market. Is crypto the tail that wags the stock market’s dog? Probably. And since Etheruem rallied 60% off the lows it found a few weeks ago, it gave the most speculative crap in the stock market to rally 40-60% too.

I am selling more Paypal PYPL, cutting it in half again here on my way to selling all of it over the next few days. The report wasn’t that great, as the company actually missed on both top and bottom lines a bit but the fact that activist investor Elliot has taken a $2 billion stake and the company announced a $15 billion buyback has the stock popping anyway. We bought more PYPL in several tranches aggressively around $70 as noted in recent posts and I trimmed half of that position before the earnings call.  Paypal’s a great company, but it’s not all that Revolutionary any more and the growth rate just isn’t enough to get me excited.

My rough playbook here is to continue to trim and sell long positions into this rally and to have a list of growing names that I am going to start scaling into, hopefully on a big broad sell off in coming days and weeks. In the hedge fund, I’m buying some puts on COIN and scaling back into some shorts that I’d been covering as noted a few weeks ago near the lows.

The greed in the markets is back with a vengeance, as evidenced by the HKD silliness turning farcical as the stock of this Asia-based digital platform company has run from $7 when it came public a few weeks ago to $2300 yesterday. If I know one thing right now, it’s that we are in a new geopolitical paradigm, a new Inflation/Fed/Rates/Stock Bubble-to-Crash paradigm where the old playbooks that everybody has used to try to game the markets and the economy aren’t going to work any more. I don’t think we’ll have an Echo Techo Stock Bubble that will take the megacap tech stocks to new all-time highs anytime soon. I do think we will see hundreds of smaller publicly-traded companies go up 10 to 100 times in coming years. I’m going to continue to dig into more names from The Biotech Revolution and The Redomestication Of The Supply Chain Revolution and preparing for The Space Revolution as it gets ready for primetime in the next one or two years.

I have to run to Colorado tomorrow and I’ll be thankful for the 400 mile range on the Model S even though there’s a SuperCharger right on the way in Santa Fe that I’ll recharge at. So no Live Q&A Chat this week. We’ll do a chat on Monday at 1pm ET though.

I leave you with a picture of our beautiful, sweet colt, Toto, who is the only baby horse I’ve ever seen that literally gives kisses on the lips and snuggles your face with his every time we get close to him.