FEAR IS A STATE OF SELF-CAPTURE. AVOID IT. INSTEAD, SEIZE THE MOMENT. YESTERDAY WAS BARGAIN DAY. AMID THE MANIC MOVES MANY POCKETS OF SUPPORT POPPED UP. DID YOU BUY ANYTHING? OR ARE YOU WAITING FOR THE “SAFETY” OF HIGHER PRICES?
B e i n g knowledgeable and informed is not a gift, and we don’t claim to be either. We simply show up on a daily basis and push forward. Knowing is a state of being, contingent upon ongoing directed effort. It’s like Dan Fitzpatrick said on Fast Money, “it’s charting. Learn it.” Dan simply shrugged and put the onus of learning on us. Guess what? It always was. Dan’s correct. if we want what he seems to have, we need to simply learn it.
This week’s market action provides a perfect opportunity to assess our risk tolerance. What did you do Monday, or this week? Did you look for sales? Did you have a buy list? Had you taken any profits in the previous three months? And how are you planning to play this coming Monday? Wait. What’s happened thus far? Here’s precisely what SJ has done. Regardless, we are still down 6.4%.
Illustrations? Us too. The illustration of everything, including Friday through Friday. See that bowl? That’s when you grab. We grabbed goodies with both hands. Of course it’s a bet. That’s how they keep the prices so low.
STOCKjAW trimmed four of our positions prior to the decline. That’s not luck. It’s rules based prudence. We’ve seen this story, versions. We were there in ’08, and 2000. Gains are only gains once realized. We realized profits in all four of our trims and cuts. Here are the numbers:
1. Amazon(AMZN) Sold 10-5-17.
Trim–25%. Realized Gain, +66.49%.
We sold AMZN on 10-5-17, as a response to rising valuations, and subsequent portfolio allocation.
2. GOOG/GOOGL. Sold 1-17-18.
Trim–16.6%. Realized Gain, +85.61%.
3. Facebook(NYSE:FB) Sold 1-30-18.
Cut–41.3%. Realized Gain; long term +51.47%, short term +4.28%. Very short trade.
4. Alibaba(NASDAQ:BABA) Sold 1-4-18.
Cut–50%. Realized Gain 20.23%. Very short trade.
Once again, we had zero idea what was coming. We don’t attempt to predict market direction. We do take action inline with history and market behavior. We never wanted to sell any AMZN. We hated doing it and immediately regretted having done so, even yet. But our position had appreciated by more than 100% and we had realized none of that gain. Gain is only profit once you sell.
Guess what this guys’ scanning? His buy list for next week. Really. Got yours?
What SJ bought this week.
1. AT&T(NYSE; T) Our Cost Basis, $37.24.
Friday; +1.35%, $36.05. PURCHASE 2-5-18, $37.19. Too high. Soon we’ll tell you the 3 ways owning T even now works.
2. Alibaba(NYSE;BABA) Current Cost Basis, $167.74.
Friday; +1.71%, $176.67. PURCHASE additional shares 2-8-18, $174.18. Why yes that is a cost basis violation. With BABA we’re “trading around a long-term position. Check “Our Portfolio” above for details.
3. Take-Two Interactive(NASDAQ;TTWO) Our Cost Basis, $105.66.
Friday; +4.77% $108.45. PURCHASE 2-8-18, $105.50.
Speaks for itself.
Our knowledge base says plenty about us. So do the questions we have, and the perspectives we employ. Knowledge rarely flows to those who need it most, in a timely fashion.
Knowledge is like a cat. It may visit you periodically, but it only lives with those who feed it.
For at least ten days following the rains, Huston continued to conduct rescue missions. Many were private citizens trolling flooded and quiet neighborhoods in aluminum fishing boats. Network crews filmed a sunken city and caught disoriented victims in transit. One bedragled woman stood beside a gentluy bobbing fishing boat. She stared at the camera.
“There was no warning.”
Hurricane Harvey was one of the most publicized storms in history. National media had been covering the story since Harvey began churning in the north-eastern Atlantic. Harvey led national news for weeks prior to landfall. Where can one go in Huston to avoid all news?
Our markets are just like Huston, dangerously constructed and vulnerable. We are like Hustonians. We depend on this dangerous apparatus. Everyday this network thickens and quickens. However, no shortage of info exists here, not exactly. The market does not provide advance warning like weather radar. But history often does. We knew something pungent was on the way. Nonetheless, we stayed. Still staring up the pipe. What would Dan say about that? Learn it.
Thanks for reading. Keep looking.