Trade Alert: Nibbling Five Stocks Or So

Stop me if you’ve heard this before — it’s still ugly out there. We are now probably to the point where if a company comes out and says something is actually going better than expected (ZM doesn’t count, it was just fine but not a “things are better than we thought!” kind of quarter) the stock could probably pop 20%. For the last month, it didn’t matter if a company reported great stuff, as the market just tanked everything. Things have gotten so ugly and so panicky since then that there’s going to be some individual stocks that make some huge sudden moves higher in coming days and weeks.

Regardless, I’m following the playbook and doing some long-term nibbles into the panicky sell-off that came almost as suddenly as the recent spike did, which came almost as quickly as the prior panicky sell-off did which came almost as quickly…you get the idea. It’s wild action out there and if you’re a long-term investor, it’s best to just remain calm and maybe even start to finally get less defensive here by doing some select nibbling. That’s what I’m doing in the hedge fund today and in the personal account too, nibbling a few of the following names (not making big purchases, but more like about 1/20th or 1/10th the size I want these positions to be:

FB, ROKU, UBER, AMZN, GOOG.

We have our playbook: Easy does it, even since I started writing this stocks have bounced. It’s volatile, so just nibble panics slowly but surely. More aggressive traders can continue to trim/short big rallies.