Positions Update

Scrape some change off the table.

In this blogger’s humble opinion:

It’s best not to venture into longer-term Growth Stock investments for two main reasons:

1.  Market conditions are bearish.

2. It’s still too early in the month/quarter/year to discern where Leadership and themes are forming.

HAVE

GROWTH STOCK POSITIONS:

none

M.A.P.L.E.S. POSITIONS:

Date Symbol L/S Entry Position Stop 20% Goal
1/7 TWTR Long 38 Half 36 45.6 Exit @ 20%
1/9 TWTR Long 40 Half 38 48 Min. 20%

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The Twit appears to have turned a corner and is staring down its 200-day MA. Down trend broken after last week. Plenty of buyout rumors on this one. Keep your hand near the ejection button at all times.

Date Symbol L/S Entry Position Stop Goal
1/8 USO, March 20, 20 Call Long 0.78 Quarter 0.25 Two, Three -bagger

Pure bottom picking on this U.S. Oil ETF. Nothing in the charts suggests a reversal is happening. We generally avoid trying to catch a falling knife. BUT, it sure feels like we’re getting close to a bottom. Beauty of options is we can risk very little to take that chance. Let’s call this a lotto ticket at this juncture. Besides, seasonal tendencies for oil demand might play in with a reflex rally this month or February. We’re slowly getting our feet wet here.

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WANT

We think Homebuilders are an excellent candidate for Leadership. Read more on this here.

Ticker Company Chart Entry
KBH KB Home L-BASE 18.18
NVR NVR, Inc. BO BO
RYL Ryland Group Inc. L-BASE BO
WCIC WCI Communities Inc. BASE BO

The train appears to be leaving the station on these. Aggressive money scales in very cautiously. Be ready to eject in a heartbeat. Stop losses are your best friend here.¬†Only KBH offers a traditional pivot point entry. It’s also the weakest of the bunch. Again, this is aggressive buying because it’s not the best market conditions. BUT, we like what we see. We’re looking to get long here also long as we don’t see a collapse in the charts and it doesn’t get too far ahead of where it is.

Stay safe. Keep your powder dry.

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