Market Falls... Sell: STMP at $15.25
Good morning!
It's Monday morning and I got up at 5:00am. I could not go back to sleep. Thoughts were running through my head. What kind of thoughts? I am thinking about the market (come to think of it, I wonder if it is healthy for me to be thinking about the market just as I get up in the morning, hmmm). But then again, this is why you guys come and read my stuff, right? My curse is your gain I hope (no, seriously, I do not think of this as a curse - you know I love what I do). I am just glad that with the technology we have today, I get to share my ideas with you.
Anyway, sitting on my bed at 5:15am (dark outside still), I am visualizing the stock market charts - the future version that is. What will the market do in the next 6 months? More importantly, what will each of our holdings do in the near future? The truth is that if I knew the answer, my life would be boring - very boring. So, to keep my brain stimulated, I run through the various possibilities (it is now near 6:00am). Then I decided to type. So, here it is.
Dow 30 / SP500 / NASDAQ / QQQQ will all fall from here.
This is my prediction. As most of you know, I have been a little uncomfortable with the general market for sometime ( thus the QID in our portfolio for the first time). Of course I could be wrong, but I could be right. You decide.
First, I went into my IRA (401K) and moved all money to: 10% Stock / 45% Bond / 45% Fixed. This is until we get the 10% or so discount that I am expecting from the market. Next, I looked at our portfolio. Two things you should do now:
1. Sell STMP if you have it. I just placed a Sell Limit order at $15.25/share. Since we bought it at $15.08 this will be no loss trade. To cut long story short, I don't like the fact that U.S.Postal Services is getting into the online postage action. I do not want to compete with U.S.P.S. I don't need the headach at this point. Sell.
2. Buy QID. Recently, we have bought QID in our portfolio at $51/share. This is a short term investment. Well, this will act as a hedge against our portfolio (an insurance). My target for this is $59.33/share. If I were you, I would place a sell limit order (GTC: good-till-cancel) as soon as I buy QID.
P.S: I have added more of RICK at $5.69/share on Friday. Technically, RICK looks terrible. Fundamentally, I don't know why this is so weak lately. All the information I can gather says that RICK is cheap at this point. Toward the end of December, RICK will announce yearly financial. I am going to assume that this will be good. Bottom line: Although things do not look all rosy, I am going to stick with RICK. As I have said before, unless things change fundamentally for RICK, I am going to hold this until ...
It's Monday morning and I got up at 5:00am. I could not go back to sleep. Thoughts were running through my head. What kind of thoughts? I am thinking about the market (come to think of it, I wonder if it is healthy for me to be thinking about the market just as I get up in the morning, hmmm). But then again, this is why you guys come and read my stuff, right? My curse is your gain I hope (no, seriously, I do not think of this as a curse - you know I love what I do). I am just glad that with the technology we have today, I get to share my ideas with you.
Anyway, sitting on my bed at 5:15am (dark outside still), I am visualizing the stock market charts - the future version that is. What will the market do in the next 6 months? More importantly, what will each of our holdings do in the near future? The truth is that if I knew the answer, my life would be boring - very boring. So, to keep my brain stimulated, I run through the various possibilities (it is now near 6:00am). Then I decided to type. So, here it is.
Dow 30 / SP500 / NASDAQ / QQQQ will all fall from here.
This is my prediction. As most of you know, I have been a little uncomfortable with the general market for sometime ( thus the QID in our portfolio for the first time). Of course I could be wrong, but I could be right. You decide.
First, I went into my IRA (401K) and moved all money to: 10% Stock / 45% Bond / 45% Fixed. This is until we get the 10% or so discount that I am expecting from the market. Next, I looked at our portfolio. Two things you should do now:
1. Sell STMP if you have it. I just placed a Sell Limit order at $15.25/share. Since we bought it at $15.08 this will be no loss trade. To cut long story short, I don't like the fact that U.S.Postal Services is getting into the online postage action. I do not want to compete with U.S.P.S. I don't need the headach at this point. Sell.
2. Buy QID. Recently, we have bought QID in our portfolio at $51/share. This is a short term investment. Well, this will act as a hedge against our portfolio (an insurance). My target for this is $59.33/share. If I were you, I would place a sell limit order (GTC: good-till-cancel) as soon as I buy QID.
P.S: I have added more of RICK at $5.69/share on Friday. Technically, RICK looks terrible. Fundamentally, I don't know why this is so weak lately. All the information I can gather says that RICK is cheap at this point. Toward the end of December, RICK will announce yearly financial. I am going to assume that this will be good. Bottom line: Although things do not look all rosy, I am going to stick with RICK. As I have said before, unless things change fundamentally for RICK, I am going to hold this until ...
posted by Jaewoo | 6:16 AM
5 Comments:
IDWD: What is going on??? Down to $0.69. Do we hold? ...Sell ... or buy more?
Is MIDS still good to get into in $0.75 range?
Small:
You must have high tolerance for risk. Your picks are the riskiest of the bunch. I will comment on both today. My average price for IDWD is $0.756 (15,000 shares) and MIDS $0.896 (30,550 shares).
Does this answer your question?
It all depends how much you already have versus how much risk you can stomach.
few weeks ago you mentioned axr good for quick short at 70. Today I shorted 500 shares at 119.99 at the open. I keep an eye on all your previous blogs. I can wait for this stock to come down to earth even if it goes much higher before reality sets in.
gus
Gus:
Good to hear from you.
I am with you on this. There are so many good short candidates that I know things have to come down to earth. Having said that, I would have waited for some negative confirmation before jumping in but I think you should be OK. In time it will correct itself. Good luck.
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