Bitcoins grow on trees
Stocks rise for a fifth straight day. For sure though, the talk of the town is the metaphoric rise in crypto-currencies, i.e. Bitcoin. I’m literally sitting in a coffee shop yesterday going through my charts, and a random stranger starts asking me what I think about bitcoin. I tell him to research tulips in the 1600’s and he’ll know my answer. He actually took offense to the tulip comparison and defended his reasoning.
My friends, when you are defending positions, that makes you married to them. You defend what you care about in life. Your spouse, your kids, your career choice. When you defend a stock or an asset class like bitcoin in a similar manner, well, that means you are married to it too, and that failure is not an option.
I am in four stocks right now. Whether I profit or not in them, does not matter (though the preferable option is to profit) because, my success does not hinge on them. I am however married to risk management. I’ll defend that all day and all night.
A particular stock though? Not so much.
This phenomenon that you see with bitcoin is not going to end well. People are not getting in it under the premise of managing risk. They are getting in it because they are willingly choosing to marry themselves to bitcoin and its success (but more likely its ultimate failure) in hopes that they will make riches beyond their belief.
I get email everyday from traders asking me what I think about bitcoin. Most of the the time they have already bought in, and simply want me to validate their decision. That they married the right one.
If you find yourself in that camp, then go divorce yourself from the position.
…oh, and did I mention that the VIX is back at 10-flat?…Ridiculous!
S&P 500 Chart
Current Stock Trading Portfolio Balance:
- 4 Long Positions
Recent Stock Trade Notables:
- SPXU: Long at 16.60, closed at 16.98 for a 2.3% profit.
- JP Morgan Chase (JPM): Long at 87.84, closed at 85.98 for a 2.1% loss.
- Micron Technology (MU): Long at $29.00, closed at 28.04 for a 3.3% loss.
- Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit.
- Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.
- Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit.
- Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit.
- Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
- Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit.
- Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit.
- Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss.
- Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
- Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
- UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit.
- Murphy Oil (MUR): Long at $28.69, closed at $27.89 for a 2.7% loss.
- Las Vegas Sands (LVS): Long at $57.24, closed at $56.53 for a 1.2% loss.
- UPRO: Long at $91.94, closed at $96.54 for a 5.0% profit.
- Alibaba Group (BABA): Long at $105.736, closed at $108.22 for a 2.4% profit.
- Facebook (FB): Long at $134.27, Closed at $139.23 for a 3.7% profit.
- CDW Corp (CDW): Long at $58.65, closed at $58.91 for a 2.7% loss.
- Redhat (RHT): Long at $82.41, Closed at $83.53 for a 1.4% profit.
- Ambarella (AMBA): Long at $57.15, Closed at $55.52 for a 2.8% loss.
- Alibaba Group (BABA): Long at $104.73, closed at $106.05 for a 1.3% profit.
- Broadcom (AVGO): Long at $218.63, Closed at $222.71 for a 1.9% profit.
- American Airlines (AAL): Short at $44.76, Closed at $44.03 for a 1.6% profit.
- UPRO (Day-Tade): Long at $95.35, closed at $96.50 for a 1.2% profit.
- OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss.
- FNSR: Long at $34.25, closed at $34.70 for a 1.3% profit.
- UPRO (Day-Tade): Long at $96.92, closed at $98.03 for a 1.2% profit.
- JP Morgan Chase (JPM): Long at $87.21, closed at $89.67 for a 2.8% profit.
- Chevron (CVX): Short at $110.03, covered at $111.85 for a 1.6% loss.
- Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit.
- Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit.
- Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss.
- Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit.
- Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit.
- Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.