1 Out of 3 Ain’t Bad

by JDH on June 9, 2018

Two weeks ago I made this prediction:

Gold $1,400 by Canada Day.

I could still be correct.  All we need is a $100 move in three weeks and I’ll be a genius, but it’s not looking like a great prediction at the moment.

Obviously I’m long on gold, and as I said one month ago, I am also short on Tesla.  When I wrote that, Tesla was at $301.  It did subsequently fall, I sold my puts, made some money, but then went short again.  Tesla closed Friday at over $317.  I sold my puts on Thursday, at a loss.  I have no doubt that Tesla will eventually go bankrupt, but imminent and inevitable are not the same concept, so more time my elapse before the collapse occurs.  We shall see. For now, I’m on the sidelines, although I expect to go short again at some point.

That’s two wrong, or at least timed wrong, predictions.

The only stock predictions that are not going to pot, are my predictions on pot.  I wrote last week about The Green Organic Dutchman, which traded as high a week ago as $6,60, after an IPO at the beginning of May at $3.65.  This week, on Wednesday and Thursday it traded over $8, and closed the week at $7.62.

Volume was high.

Of course a stock can’t double in a month and sustain that type of increase, so I assume it will pull back in the coming weeks, but that’s fine.  Once it’s fully legalized in Canada (and it passed an important hurdle with the Senate approving it on Thursday), I see TGOD as a $10 stock.

We shall see.

For now, 1 out of 3 ain’t bad, when the 1 is a big winner.

That’s my report; more next week.