Trade Alert: Take some profits into the euphoria
We bought panic when we had the chance. Now we sell into the euphoria.
I remember back two years ago, a couple months after Amaris was born and I rented a house in Albuquerque for my family so we could be close to the UNM Hospital. It was a very stressful time. Meanwhile, every day the stock market was getting crushed and even many of our own Revolution Investing stocks were getting sold off. The stress built quickly from all directions. Trading With Cody subscribers were telling me:
“I clearly understand the desire to SELL IT ALL.”
And
“I am considering to sell all shares and go 100% cash.”
I told my father-in-law one morning that I felt stupid and that I hoped that meant we were close to a bottom.
Fast forward to today, and I’m overwhelmed comments like this in my inbox and in the Trading With Cody Chat Room:
“$FSLR +21.31% $GOOGL +6.50% $AMZN +10.80% $INTC +5.73% Amazing day to be a TWC subscriber. Stellar earnings.”
“Hi Cody, Just one thing. THANK YOU. Blessings to you and family.”
“Incredible day for the portfolio. $FSLR is up around 120% since April. One of many stocks we have outsized gains on. Thank you Cody.”
“Thanks Cody. Thanks Trading With Cody community :-)”
So I’d like to take this opportunity to do a victory lap…oh wait, no. No time for victory laps!
Rather than celebrate, rather than enjoy the euphoric day propelling further gains on top of the euphoric long-term gains in almost all of our dozen or so Trading With Cody stocks, both long and short — let’s really try remember how painful it was to be long stocks and how stupid we all felt back in August/September 2015.
Read some of these headlines and/or click thru to read the entire articles for a somber reality check on this euphoric day.
Is the bull market over?
September 24, 2015 by Cody Willard
Stocks getting walloped (again). Is the bull market over? If so, is the stock market telling us the economic cycle has topped and we’re heading into recession? I’ll be the first to admit that while I take a lot of pride in having launched a tech hedge fund at the bottom in 2002 and closed it in 2007, trading stocks for TV as I repeatedly told my viewers back on Happy Hour, … [Read more…]
Congrats…Now what? Stay cool.
August 24, 2015 by Cody Willard
Well, that’s why we do what we do. We sell euphoria. We buy fear. In my twenty years on Wall Street, I’ve only seen maybe two handfuls of days like this where you can make 15-30% in high quality, blue chip stocks — in a single day’s session. The stocks I went out and bought this morning at the panicky open, are indeed up big already — $AAPL, $GOOG, $FSLR, $AMBA, $EZCH are … [Read more…]
Trade Alert: Scaling in amidst the panic
August 24, 2015 by Cody Willard
We have a lot of stocks DOWN big today. Many of our biggest positions ARE BACK DOWN to levels they haven’t seen in many months. If you haven’t done any BUYING, consider doing so. Maybe NIBBLE ON 10-20% of WHAT YOU CONSIDER A FULL-SIZED POSITION.
It’s easy to get carried away in the momentum and to start feeling THE PANIC when so many stocks AND the broader markets ARE BASICALLY CRASHING. In the Trading With Cody Chat Room today, there are a lot of comments like these:
- Do you consider going 100% cash yourself?
- I clearly understand the desire to SELL IT ALL.
- I am considering to sell all shares and go 100% cash.
Just a reminder that it’s better TO BUY INTO PANIC, NOT SELL INTO PANICS. And on that note, I WILL TELL YOU that my ratings for most of our long positions JUMPED HIGHER IN THE LAST WEEK, as most of our stocks HAVE COME DOWN.
It’s been said that stocks go up like an escalator and they go down like an elevator. So it goes. And while most money managers were bullish and getting longer when the markets were at all-time highs and/or rangebound near all-time highs, the same folks are now panicking and selling and turning bearish.
If you trimmed when stocks were higher, if you follow the playbook, you’re not sick to your stomach today — you’re looking around and starting to pick up some shares. Don’t draw a line in the sand, don’t try to nail the bottom. Just scale into some more long exposure while others are panicking.
That’s exactly what I’ll be doing this morning as I nibble on some of my highest rated stocks. I’m not going to go all-in and I’m not going to load up on call options (yet?), but I am going to scale into more long exposure while others are panicking.
Trade Alert: Using the mini-crash to buy some stock back
August 21, 2015 by Cody Willard
Time to do some more nibbling into what is becoming a panicky sell-off Mini-Me Crash. I’m nibbling some Ambarella AMBA common stock at $88 per share and some Apple $AAPL common stock at $108 per share here right now. And here’s a few more Q&A for you. Q. Do you think we will see a rate hike in september? And what will it do to the market If it happens? A. Do you … [Read more…]
Trade Alert: Gold miner trim and two nibbles
August 21, 2015 by Cody Willard
Markets don’t go straight up. Pullbacks happen. Fear builds. Panic selling starts. And feeds on itself. And then we put in a bottom. Stocks can fall farther. Traders who bought yesterday looking for a bounce that never came are selling today. Investors who have had big gains but now have smaller gains will want to protect what they’ve got left, so they too might be selling … [Read more…]
Okay, Cody back in real-time October 27, 2017 now. Of course, I’m thrilled and even proud that we were buying while otherse were panicking and that so many of our stocks like Google, Amazon, Facebook, Nvidia, Solar Edge, First Solar and even recent purchase Intel from a few weeks ago are up huge and at new 52-week or all-time highs. But more importantly, what now? What next?
Be patient. Be cool. Don’t be complacent. Trim maybe 10-20% of some of these huge winners. Thats what I’m going to do this morning.
I’m trimming 10% of my Nvidia and I’m trimming 15% of my Twitter and I’m trimming 10% of my First Solar positions this morning.
