Samwise Quick Reference Handbook
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I have some RDDT shares that I do plan to hold long term. My average price is 150. Recent price action has been concerning so just wanted to get your take on it ?
Also,TSLA seems to be in an upward trend – has created a higher high past two weeks. Would it be a good time to get in or should wait for some pull back ?
Thanks in advance!
So when we decided to buy Reddit – and we closed it out fairly early on — it was entirely for momentum reasons. We bought it for the momentum. Once the downturn heated up, that sort of went out the window.
We haven’t done any sort of fundamental analysis on the stock at all. And because it doesn’t have a very long trading history, it’s a bit difficult to really gauge. It’s why we’re not long the stock atm.
In fact, right now, our focus is on the QQQ and well established names. In bull markets where everything is skyrocketing on heavy momentum, that’s where we like stocks like reddit.
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So I can just tell you that as we’re concerned, we wouldn’t buy Tesla here because our strategy is contrarian-based. We buy when stocks pull-back. Tesla is now up 50% from its lows.
If we had considered a long position in Tesla it would have been in the low $200’s. And we did at the time. When the market was capitulating back on April 7, we discussed the idea of adding it to our long-term portfolios. While it is still way below its highs, we wouldn’t buy it here for any of our long-term portfolios. Not near $300 a share.
We do own a position in Tesla spreads in the trading portfolios and we’ll continue to hold those. But those positions are relatively small.
thank you. Appreciate the helpful response!
Closed below open, does this change our outlook or we wait and watch for next week? especially with the tariff situation that will evolve over the weekend.
So this is all a game of probabilities. Friday’s day just adds to the previous 6 sessions which were also either doji’s or reversal days. The action as a whole indicates a potential top. But it doesn’t tell us whether it’s’ for a near-term pull-back (already in our outlook) or an intermediate-term top (also in the outlook).
Right now, it’s uncertain what the market is going to do next. But once it does make a decisive move — either breakout above $493 or pull-back to $465 — then we’ll have a better sense of what’s coming.
Our investment/trading decisions will be based on what comes next. Sell-off and oversold. We buy. Breakout and overbought we sell for a short-term trade.
Postive news now with Trump / China. The technicals are what they are, but foes this really change what the market is going to do anyway?
So sometimes using a spread can be utilized for hedging. For now, we’re using the 1-year put to hedge. And it’s been working well. We outline the different ways to hedge in investing basics. Short-term hedges, long-term hedges and open puts versus put-spreads.