Loading ...Last Man Standing
On Tues. I posted “Death of FAANG” and followed up yesterday with part 2. In the original I said that Friday would be a “bloodbath” led by the FAANGS. The only stock keeping this from becoming a total rout is GOOG(Alphabet). I expect GOOG to begin sliding and if it closes well off it’s early high, especially if it ends the day down, Monday will be a total Massacare!
Engineered to Defeat Trump no doubt
Good call so far Chartsmaster
Yes, Sir Chartsmaster!
GOOG, is being considered by many, to be “less innovative”, bordering on a one-trick pony … the “winners” being AMZN, FB, ZM, MSFT
I ask myself: even the superstar of the “forced WFH” era, Zoom (ZM), is now down 20% from its 52-week high.
So, yes, I spun wheels in SQQQ, I entered it knowing that that was a possibility. I was in a dilemma to buy it under 20 bucks, and I didn’t.
But if I look back at at 10/13/2020 and compare it with today, I was down in my miners portfolio by 12-14% overall (40+ rocks). I spun much bigger wheels there, and had bigger unrealized losses on the rocks, which I cannot sell any way, as gold is nearing the ICL.
So the gameplan is simple: allocate 2-3% of my portfolio to SQQQ, and make a quick 20-30-40% and … in the meanwhile, whichever/multiple of these rocks go down the most, use the cash to cost average them down.
For the other Tenters, here’s your last comment on the previous thread on this same topic:
https://goldtadise.com/?p=479104#comment-78675
Thanks for all that you do and share at the Tent.
GL
For comparison sake GL, look at the recent chart of PSQ, which I too have continued to hold. Although I suffered while it pulled back during the markets rally in the first half of Oct. it now has been moving up slowly but surely in a nice tight pattern over the last couple of weeks. I know you are going for the homerun with a small percentage of your portfolio and that is fine. Just look at the difference in the charts.
If your call for a bear market in stocks is right, it will be interesting to see how the miners react. While it is possible they go up, as they did in 2000, I’m not convinced they will. And even if they do go up, they could still underperform bullion as they have been doing for the last 25 years.
Miners have indeed underperformed for a long time Nautilus. In the less likely event of a Biden victory in the presidential election I could imagine that the miners will grossly underperform because of the specter of eventual nationalization of the mining industry. And I think that goes for miners of basic metals and oil companies as well.
Like any bull market, some miners will outperform bullion and some will underperform bullion. That’s why we diversify.
And that’s why we diversify into “lesser known” rocks!
I have profited a lot from the rocks advertised on kingworldnews.com, from Bob Moriarty of 321gold.com, and learnt many a name from an erstwhile Tenter, Patrick Karim. It kind of feels funny, holding 50 to 70 rocks, but “that much diversification” has become the shock absorber in my portfolio. I did not now that this strategy could work, when, as recently as 3 years ago, I had “barely” 15-20 rocks, and used to chase “bigger names”.
So far, in my journey, holding the four (or 6 or 8) horsemen of the apocalypse, as named such by Sir Plunger, has not benefited me much, but I have held most of these for only 12-15 months, so those trades are still younger by comparison, when I look at many less know juniors that I held, and gradually cost averaged down at least some of them, for 24-42 months.
But two or three good juniors have covered for, and then some, handsomely, for the losses in the bigger names. That trend is what has been my biggest learning, in the past 21-24 months.
Since then, I have never had a red quarter, in terms of realized gains.
GL
Sounds like you have all bases covered. Should see some nice returns when the gold bull resumes in December and beyond. Well done.
Bringing the conversation back to SQQQ
Mr. Hubbart bought when I “should have” bought … the 10/12 to 10/13 timeframe. He has now sold, while I’m chasing … let’s see
Scroll down in the link below for the SQQQ chart.
http://www.321gold.com/editorials/sfs/hubbartt103020.html
I’m looking at the indexes as a whole. In a real bull market in the miners, I believe the entire sector, on average, should trend higher vs gold. Of course within the HUI, there are miners that outperform and those that underperform. The bottom line is, unless you are a heck of a stock picker, on average the miners have underperformed gold over the last 25 years, and have yet to break above their peak vs gold in 2016.
Now, it’s possible that this is all about to change, but the trend is your friend, and the trend has been downright ugly for 25 years. For those of us speculating in miners, this outperformance vs bullion (again on average) is always just around the corner. But it never comes.
GDX:GLD tagged its 50 WMA this week. If ever there was a technical level that should produce a low and hard rally, that is it. If not now, when?
Exactly Nautilus !!
If not now then when !