Official Investing Thread

One of my favorite things about that strategy is you enroll in the DRIP and its automatic dollar cost averaging for you.

 

I see 3M and JNJ have two of the more popular drip plans. I think they both just require you already own at least one share. Does anybody know how that verification and setup process works?

 

You should be able to enroll online...if not, call the broker

 

It's pretty easy on TDA. I switched all my stonks to reinvest dividend.

Edit: all my eligible stonks

 

Do any give you a discount on new shares?

 

Same here. Really easy to figure out.

 

Not sure. Haven't checked.

 

Not a fan of automatically reinvesting the dividends. If I feel a stock is a bit high or bloated I'd much rather take that money and put it into a stock I feel is undervalued or has more upside.

 

I'm doing it on things that I don't plan on selling anytime soon.

 

Based on social media also he, it looks like Vegas is having a blowout weekend. I’m interested to see how the casino stocks open tomorrow.

Everything is on its way back, but COVID cases up across the board. Something has to give

 

With everything going on, Who know what it will take for the market to come back to reality.

 

percent positive, hospitalizations, and deaths are continuously falling. I think those are the more important measurables.

 

Exactly. Cases will rise also because testing is way more widely available. The context of the data lies in what you said

 

It’ll be interesting to see the data in a couple weeks with all of the protesting and lack of social distancing.

 

I re-bought and held LVS 7/10 call for this very reason. I've already made money on it, so figured I'd get greedy.

 

Basically all travel stocks are printing money again in PM. This feels like what was happening in late Feb and early March when any put on any travel stock just doubled every few days.

 

Welllllll, this shits crazy.

 

I’m fighting the urge to sell my remaining hotel options right at open. Several days in a row the daily high has been right at open

 

Sold my 06/19 Wynn $90 call.

In on 06/03 for 5.35, out this morning 16.00.

If it dips I may buy back

 

Did anyone else get into NKLA? Shooting up so far this morning

 

I sold AAL this morning for a 25% profit. Didn’t like it as a long term hold. Doubt they get back to where they were.

 

I don't trust companies that take bailouts long term. Trying to figure out what to do with LUV. Got in at $24.98.

 

I just sold my 100 shares, I'm worried about the COVID outbreaks

 

I sold my final LVS call today. I’ve only got some debit spreads open. Bought COTY Friday and sold today for about a 35% profit.

 

Up about 60% so far today. Wish I would have bought more

 

I’ve started buying small amounts of “safe” dividend stocks that i plan to hold long term. Only putting in about 1/4 of what I’d like to. I’m planning to add if/when there are dips

 

Not trying to get too personal, but do you mind sharing your picks?

 

Same, I have 75% of my stuff in just SPY. Then playing around with the other 25%

 

Nothing too bold.

JNJ, MCD, T and BF.B so far

 

What's Hank saying lately

 

I'm going to find some VXX calls around a $60 strike and start picking them up as insurance. Only like $250 for a January strike. Tempted to go earlier but have doubts Trump's election will let them materialize. Might wait until SPY hits 330 again

 

Strategy I'm trying on a small scale before scaling it a bit is covered calls, which a few people have asked about:

Buy 100 DGLY @4.00 ($400)
Sell 1 DGLY 6/19 $5 Call at $1.08 ($108)

So if on 6/19:

Any price $5 or above: $208 profit ($100 from the stock going up, $108 from selling the call)
Any price $4-5: $108 profit plus I have a stock that increased in value, I can sell a call on the next option window to decrease my cost even more
Any price $2.92 to $4: $108 profit, some of which I lost on a stock that decreased, I can sell a call on the next option window to decrease my cost even more
Any price $2.92 and below: It's like I owned the stock and lost some money, but $108 less than I would've, I can sell a call on the next option window to decrease my cost even more

I might miss out on it going to $30 in the next two weeks but it's a very safe play compared to some others

 

I purchased 6 CCL $55 7/17 calls back in March when I thought the virus concerns were over blown. The stock was around $34 then, it’s now at $24 or so. The contracts are $0.05 more than what I bought them for.

Anyone think CCL will continue to climb or should I take my money and run?

 

You're asking for a 120% gain in 5 weeks with no earnings report in the meantime. I'd cut bait and take your $15 per.

My analyzer says that there's only a 1% chance it breaks $45 by then so $55 is a pipe dream

 

The markets catapulted higher on Friday after the BLS announced that 2.5 Million people went back to work. Hmmm? I wonder how much of this number was fudged. Remember, a good portion of the Jobs Report number is a guess…a made up number, so there’s no telling how much truth there is in a number so large. But still, even if the number is real, that still leaves about 38 Million people NOT working. Hardly the kind of number that would justify an 800 plus point rally. A much better explanation is the fact that after a sideways wave 4 triangle, an extended wave 5 up was not only likely, it was expected! (See my comments in last weeks WSR)

The Dow finished with gain of 829 points, closing at 27,111. It was up 1,728 points for the week. The NASDAQ gained 198 points on Friday and was up 324 points for the week.

Friday’s early impulsive rally appeared to be final wave 5 of Wave C of Major Wave B up. With Friday's rally, Wave C up has now completed all five waves of the 3-3-5 retracement pattern. After forming a wave 4 sideways triangle for most of late May, Wave C appeared to need one more rally leg to complete the five wave pattern. This was achieved on Friday as the Dow rallied to 27,338, which was slightly above the Fibonacci retracement level of .786. A retracement of .786 is considered a full retracement, which is a very unusual event for a Wave B.

From a technical perspective, by rallying to 27,338 intraday, the Dow filled the gap from the close on 4 March. So, if Friday’s rally was indeed wave 5 of the extended rally, it can be considered complete. Otherwise, if the rally was only wave 3 of the pattern, the Dow should experience a small pullback early next week, followed by another small rally to complete the pattern. Doesn’t really matter much as I don’t expect Major Wave B up will complete much above Friday’s high.

One thing I should comment on was Friday’s volume. It was EXTREMELY high, coming in at 14.5 Billion shares. This was the highest volume since 4 March which marked the top of the 4 day counter trend rally within the February - March crash wave. Many times, high volume days like Friday’s produce an exhaustion top, so we’ll need to see if this is the case next week. Because Friday’s rally started with a large gap up, if the Dow opens lower than 26,837 on Monday, it will produce an island reversal candlestick, a pattern that almost always marks a major top. So, Monday’s open should be interesting to watch.

When I saw the Dow move above the 27,138 Fibonacci retracement level, I began establishing a few trial short positions using inverse index ETF, both for the Model and my own trading accounts. BTW, even though I sat out most of Friday’s early rally, my trading account was still up over $750 by day's end. My Scalp Trading indicators delivered once again. Looking back at the past week, every day except Wednesday was a profitable for me. Wednesday’s trading produced a small loss of $30, as I got caught on the wrong side of the indicators when I had to do a chore for Marcia. I was up about 200 bucks before the chore. The other days produced profits ranging from $200 to $1,200, so overall, it was a good week.

The Market Timing Indicators for the Major Indexes remain Positive.

The Dean’s List and The Tide also remain Positive.

The Sector Ratio stayed at 24-0 Positive after Friday’s session. The top 5 strongest Sectors were Energy, Material, Autos, Media, and Leisure.

Last week I mentioned that if you wanted to trade a potential wave 4/5 move higher, you might want to focus on stocks in the strongest sectors and stop worrying about what the market is going to do. If you get a chance this weekend, you might want to look at how stocks in last week’s strongest sectors did. If the market begins to trade lower next week, you might want to watch to see which sectors begin to move to the Weak List. Again, these are the sectors that will lead the market lower. Right now, the four weakest sectors on the Strong List are Food/Drug, PharmaBio, Telecoms, and Computers.

Gold fell (GLD) 3.27 points on Friday to 158.01 as traders moved out of gold and into equities. Two weeks ago, when the HUI was trading at 281, I talked about the mining index falling to 240. O Friday, the index fell to 250 before rallying to close at 161. During the same period GOLD has fallen from 28.31 to 23.29. I’m now watching my Scalp Trading indicators for a Buy Signal.

Bonds continued to fall during the week as equities rallied. TBT, the inverse ETF for Bonds rallied to a high of 18.3 where it appeared extremely overbought. While my target for TBT remains a few points higher, the overbought conditions were enough for me to book a profit on TBT and re-evaluate the trade later this week. As things turned out, I sold a half position on TBT at 18.20 and was stopped out of my remaining shares a few ticks later. After I sold TBT, I started to buy a trial position in DXD for the Model. I also bought shares of DXD, TMF and QID for my own trading account. My average cost for DXD was 17.30. I also bought 10 DIA 18 September 210 Put Options. Cost was 2.52 per contract for a total options investment of $2,520.

After selling its shares of TBT and buying DXD, the Model now holds 40 shares of UCO and 1,200 shares of DXD with a cash balance of $77,185. Depending on what happens next week, the Model will look to increase its position in DXD, and establish positions in TWM and QID, the inverse ETFs for the Russell 2K and NASDAQ-100. If gold continues to pull back causing the HUI to approach the 240 level, the Model will look to establish positions in GDX and GDXJ.

Have a great weekend,

That’s what I’m doing,

h

 

That was the Saturday post.

 

Not including today, which is on pace to make 8, I’ve had 7 days of 10% or better gains on my entire account in the last 14 trading days. One was over 20% and at least one more was about 18–19%.

This market is dumb. I’m not buying another thing until I see at least a little red.

 

Nah, no brakes until November

 

I hope so. I’ve already got significantly more than my original investment out there working, so I’m content to let that sit, just not putting in any more at this point. My 401K hopes I miss out on huge gains

 

Just dumping all my money in. Don't give a shit. I now only have $7,000 cash.

 

We made it back to 2020 now. The S&P is at $3,217. On January 6th, 2020 the S&P opened at $3,217, and hit its all-time high of $3,393 43 days later. So maybe it has a little more room to run, but damn that's scary.

 

I’ve sold most of my short term, low dividend paying positions. I’m taking the profits now because I don’t think this fast growth is sustainable and expect a lot of those to come back down to earth.

I’m still holding DAL, RCL, BA, and CCL.

 

How much of this is due to people working from home (can watch the market all day), extra cash on hand from not going out, and no other vices (i.e. gambling)? Or is that just me?

 

Other long term holds are GS, JNJ, AMD, SHLX, PG, AB, and NUE

 

It was pure timing for me. I had never messed around with individual stocks before and decided at the end of last year that for 2020 I was going to start playing around.

 

Anyone here in healthcare (at a hospital)? I saw on CNBC this morning that a hospital system in AZ was at capacity for their ICU. I was doing a fantasy draft this weekend and one guy who does sleep studies at a hospital was called down to the ER because they did not have enough respiratory therapists staffed that night to put people on respirators. He said his buddy in Miami told him the hospitals were seeing a spike in COVID cases due to Memorial Day weekend exposure. I can definitely see Florida keeping this under wraps as the governor does not allow hospitals to release numbers anymore. All hospitalization numbers must be released by the state. Looking for confirmation on the second wave from Memorial Day. If those are true rumors that I posted above, that could spark the dive.

 

I can tell you one of the midwest's biggest healthcare networks is 30% down on respirator usage from the peak