Stocks to Watch Thread

[Rich]

Just wanna brag that I bought a good chunk of AMD at about 28 last year and even with the downturn in the market its still up around 49. Big W for me

 

[Out of the Rafters at the Q]

Just wanna brag that I bought a good chunk of AMD at about 28 last year and even with the downturn in the market its still up around 49. Big W for me

That's the only individual stock I still hold. Everything else is in mutual/index funds.

 

[KI4MVP]

I picked up a lot of SPY. Cost averaged down during the week. Im hoping for more buying opportunities

options are pretty expensive currently so I’d love to write some short term covered calls on my SPY position where I’m ok with getting cashed out

why SPY and not the fossil fuel free alternative SPYX to eliminate the impact of the future downward trend of fossil fuels?

 

[KI4MVP]

Just wanna brag that I bought a good chunk of AMD at about 28 last year and even with the downturn in the market its still up around 49. Big W for me

Tesla's my only stock, also investing in SPYX, ARKK, ARKF

My wife invested some on IBIO at $2 - apparently they are the only US company capable of mass producing vaccine for coronavirus. I'm not sure how that's the case, but wish we would have heard about it a couple of days before we, and everyone else, did. Sold 10% at 2.50 to cut our risk. Kind of crazy otherwise, their market cap is 227 million, they had $1.7 million in revenue the past 12 months. Not profits, revenue.

 

[KI4MVP]

If most stocks are down over fear of the virus, shouldn’t amazon be climbing instead of dropping? If people are staying home because of the virus, they’ll be doing more online shopping, right?

 

[Tonedef75]

If most stocks are down over fear of the virus, shouldn’t amazon be climbing instead of dropping? If people are staying home because of the virus, they’ll be doing more online shopping, right?

yes, and no. Remember a lot of that Amazon stuff was made in China...and people, well, they just don’t know any better.

 

[Out of the Rafters at the Q]

If most stocks are down over fear of the virus, shouldn’t amazon be climbing instead of dropping? If people are staying home because of the virus, they’ll be doing more online shopping, right?

The fear isn't shopping. The fear is production. With most Chinese facilities shut down for periods of time, and still at limited capacity, the shortages of inventory are what the market fears.

 

[KI4MVP]

yes, and no. Remember a lot of that Amazon stuff was made in China...and people, well, they just don’t know any better.

we sell on amazon and our sales are up significantly this past week,

 

[The Wizard of Moz]

why SPY and not the fossil fuel free alternative SPYX to eliminate the impact of the future downward trend of fossil fuels?

I did look into it after you brought it up. Unfortunately there are no options for SPYX and I plan on writing covered calls on SPY at some point

 

[The Wizard of Moz]

we sell on amazon and our sales are up significantly this past week,

You’ve also got to remember how heavily Amazon is represented in ETFs. There are many funds where Amazon is in the top holdings that have been tanking. 3.2% of SPY is Amazon. They take an indirect hit as well

 

[The Wizard of Moz]

Has anyone who wanted a cheaper entry point to Tesla bought any shares?

 

[KI4MVP]

You’ve also got to remember how heavily Amazon is represented in ETFs. There are many funds where Amazon is in the top holdings that have been tanking. 3.2% of SPY is Amazon. They take an indirect hit as well

you mean because people are taking money out of SPY and related ETFs? Seems like Amazon should be a buying opportunity. Really no idea if the uptick we're seeing in sales is reflective of Amazon in general, though. But it does seem reasonable if people cut back on going out to shop, they'll buy more online.

 

[KI4MVP]

 

[The Wizard of Moz]

you mean because people are taking money out of SPY and related ETFs? Seems like Amazon should be a buying opportunity. Really no idea if the uptick we're seeing in sales is reflective of Amazon in general, though. But it does seem reasonable if people cut back on going out to shop, they'll buy more online.

Mutual Fund Redemptions Help You Determine a Market Bottom - Learning Markets

Mutual fund redemptions can help you determine if we're close to support and may have found a market bottom. We help you understand redemptions and show you how to find redemption data.

www.learningmarkets.com

So I was looking for an article that explained this, but most of what I found for ETFs was extremely complex math wise and honestly I added one of the papers to my reading list because it made me question my knowledge of how ETFs are affecting stock prices. This article is for mutual funds and explains the redemption process. The first video there oversimplifies things, but it’s a decent overview

I think some of it is attributable to how linked all stocks are and how in bad times correlations really tend to converge to 1 for most assets with some outliers of things that people are trying to use to hedge (or Treasuries in a flight to quality).

also from some behavioral finance papers I’ve read, people tend to hate losses more than they love gains. Most investors are risk average and the prospect of a loss can scare them enough to ignore the potentially higher reward. My brokerage literally added a “panic” button (can’t remember what it’s actually called) that allows you to instantaneously close all of your positions. That isn’t what I would call a rational act, but there was obviously some demand for it...

I think some of it might be binary thinking where each asset class is given a good or bad. Stocks are scary for a lot of peopleright now. Scary enough that they aren’t willing to separate them into different categories they just want to reduce their equity exposure all together.

 

[The Wizard of Moz]

Only reason it wasn’t worse is they closed the door. Wew we might get some halts tomorrow...