The markets are a bit shook today as investors digest the contagion fears that surround the Turkish Lira. Being that I’m not an economist, this topic hits far from home and is something that I don’t fully understand or know much about. What I do know is that I’ve seen these large moves in currencies and contagion fears many-many times in the past. Eventually, the story passes, nothing happens, and the U.S. markets head higher.
If you tune into CNBC (or any other news outlet), then you understand that the stations have much air-time to fill with conversation and debate. After countless hours of Tesla and Elon Must talk, even that can become a bit stale or overdone.
If this Turkish Lira development had taken place a couple days ago – on the same day that Tesla announced plans to possibly go public – or in the heart of earnings season - well, I believe that the Lira story would have possibly been swept under the rug. I mean, who has time to talk about a potential crisis in Turkey when Elon Musk is saying crazy shit on twitter? Not me.
Regardless of how serious the story is, the market’s reaction is definitely real. It remains to be seen as to what the longer-term potential impact might be or if continued selling pressure will occur.
Its days like today (where a story comes out of the woodworks) that make owning the VXX so important - especially when it has been trading at such low levels. Having a hedge in place makes events like the Turkish Lira much less stressful for you and your portfolio.
Luckily, even with the pullback, I’m having a solid day in the green. Nothing feels better than making money when the markets are down. It reinforces the fact that I could be on the right track with the stocks that I trade and/or own.
Today, my biggest performers are ROKU, SFIX, YEXT, ETSY, HUBS, TTWO and the VXX. I made a couple trades early in the session. Before the market open, I added 75 shares to my ROKU holding. Rarely will I ever buy a stock after a 21% run-up in the previous day of trade, but here, I made an exception.
The CNBC anchors were slurping this company bigtime after it reported very impressive number yesterday after the close. It seemed as though they were chomping at the bit to hop on the wagon. During trade yesterday, the stock popped 20% and held strong throughout the entire session, giving not even a couple % points back. With that kind of price action, I decided to place a small bet on today’s trade. It worked out, as it ran another 5%. I sold - while continuing to hold my core position.
Bought 75 shares of ROKU @ $57.59 and sold 75 shares @ $59.67 = $142 profit
I don’t day trade very often, feeling as though timing the market is a losing game. But with ROKU, I made an exception and it happened to pay off.
The other trade that I made was selling my entire position in SFIX. This was a stock that Downtown Josh Brown (my favorite CNBC anchor) put on the radar a week or so ago. Again, I liked the price action and decided to make a play. I was ok holding longer term if the stock headed south. However, I told myself I would sell if it hit a certain price target.
I bought a couple days ago at $30.36 and sold today at $33.72. I got to thinking about the fact that the company is worth 3.25 BILLION DOLLARS! That number seems a bit crazy to me. A business that tailor’s clothing to individual needs is worth billions of dollars? Wow, I got into the wrong profession. They better have people dressing super-fly to deserve that type of valuation! The stock might go a lot higher - it wouldn’t surprise me. But until I test their business model for myself, at these levels, I will be sitting this one out.
Bought 100 shares of STFX @ $30.36 and sold 100 shares @ 33.72 = $322 profit.
I’m always looking to evolve as a trader. Swing trading positions over a such short time frame has never been my thing. But since I have been awake and following the markets during the day (from open to close) as of late, I might look to make a few small plays here and there. As long as I have a game-plan in mind, as when to get in and out, then I can live with whatever the potential outcome might be.
I guess that’s about it. At 12:20 central time and day 2 of MISSION $100K, I’m thrilled that my portfolio is up $1373. Hopefully I’m onto something and the run-good will continue…I will post my overall progress on the website as well as a list of the companies that I now own.
Being that its Friday, and we have this Turkish story to deal with, I will be watching closely to see how the markets close. As of now, the panic (if any) seems to be minimal and stocks are acting as though they want to charge higher - But that remains to be seen. I’m 60% long - 40% cash – with a hedge (vxx) in place.
GL to all and talk to you soon…
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