Not Over Yet

by JDH on October 20, 2018

So, the “big crash” happened last week, and the world didn’t end.  Ho hum.

I’ll keep this brief: the bull market is not over yet.  We just observed a nice correction, to allow the Big Boys to load up on more “bargains”, so they can do it all again.  Lather, rinse, repeat.

Tesla closed at $260.  I assume they will announce decent earnings (which isn’t difficult if you cook the books) which will give the stock one final bounce, and then it’s over.  The bankruptcy filing will happen in 2018, and Elon can blame the SEC, or short sellers, or whomever.  I have no position at the moment.

Gold has shown strength, but we are not at the “back up the truck” point yet.

The pot stocks lost ground this week.  Wednesday was pot legalization day in Canada, so it was time to “sell on news”.  That’s fine, a new crop of investors can now jump on the bandwagon now that it’s legal, so after a consolidation period over the next few weeks and months, I assume 2019 will look good.  I was filled on some of my below market bids this week.

Otherwise I have cash, and I sleep fine at night.

Thanks for stopping by; more next week.

The Big Crash (Sort Of)

by JDH on October 13, 2018

As you all know, on Wednesday the market “crashed”, or corrected, or went down.  Further weakness on Thursday brought the broad averages all the way back to where they were in August.

mid-August.

Yup, we suffered through the “lost eight weeks”.  Clearly a catastrophe.

I’m holding a lot of cash, so I wasn’t paying any particular attention to this crash, since it didn’t particularly impact me.  Your results may vary.

So what does this mean going forward?

I suspect, not much.  In fact, the pull back to the 200 day moving average, which is effectively what has happened, could be construed as a positive development.  In other words, a buying opportunity.

My guess is that Trump and the Republicans will do very well in the mid-terms elections in November, picking up seats to increase their majority in Congress.  If that happens, I assume the markets will react the same way they reacted the last time he won – by going up.

So I’m not ready to throw in the towel just yet.

The Canadian pot stocks also suffered in this correction, but with partial legalization happening on October 17, and with widespread sales up and running by the end of the spring, I believe that these stocks have more upside potential.

We shall see.

More next week.

Tesla and Pot Stocks (Not the Same Thing)

October 6, 2018

My comments on Tesla will be brief.  Last week I asked if this was the end for Tesla; it’s not, yet, but the end is getting closer.  Tesla closed the week at $262, so after ramping to $316 on word of a settlement with the SEC, it’s back down, because Elon Musk can’t stop sending […]

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Tesla – The End?

September 29, 2018

On Friday TSLA – Tesla Inc. closed at $264.77, down $42.75 or 13.90%.  For comparative purposes, Tesla also close around $265 in February, 2014, and September 2014, and July 2015, and March 2017. We all know the story. Elon Musk tweeted that financing was confirmed to take the company private at $420 per share. Am […]

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Brief and to the point

September 22, 2018

I’ll be brief: Tesla is hanging in there at the $300 level.  This stock is fraud on wheels, and will crash, so now would be a good time to hold your shorts. Amazon is back down to a one month low.  It’s going higher.  Now would be a good time to go long. The pot […]

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Let’s Talk Pot (Stocks)

September 15, 2018

On Thursday cannabis stocks dropped after reports said that people who invest in pot stocks may be barred from entry into the United States.  Pot is illegal at the federal level in the United States, but legal in some states, and if you smell of pot as you cross the border you are likely to be […]

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Tesla, Elon Musk, and Weed

September 8, 2018

I listen to the occasional episode of the Joe Rogan podcast every two weeks, when he has an interesting guest.  This week he had a very interesting guest: Elon Musk.  If you have two hours, sit back and enjoy: If you don’t have two hours, here’s the gist of it: It is possible that Elon […]

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Tesla at $300, so all is good?

September 1, 2018

It was fun to watch the price of Tesla on Friday. It traded under $300 for most of the day, and then, before the close, managed to go up a dollar or two and close at $301.66. I’m not implying that the stock is manipulated, but if I was one of it’s “handlers” I would […]

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Dog Days of Summer – Limited Time Only

August 25, 2018

I have a sneaking suspicion that the Dog Days of Summer are done (a week early), and we are about to enter a very interesting period.  The game plan: First, cash is king.  There are lots of stocks that are down, particularly in the gold sector.  If they stay low for a few more months, […]

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Two Charts That Look the Same

August 18, 2018

As you know, I have paid close attention recently to two things: TSLA – Tesla Inc. and gold.  They both have similar looking charts. By way of review: I am of the view that, in the future, we will look back on Tesla with the same level of admiration we reserve for Enron.  I believe […]

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