Just before the long holiday weekend, I want nothing more than some whipsaw. Let’s sell off the NASDAQ with reckless abandon due to growth being present. Any company that is growing their revenues by more than 20% should be sold, immediately. In its place, a good utility or REIT might do.
I’ve started off the day 0.7% in the hole, almost giving back yesterday’s gains. I’ve been combing over my pnl and have decided one of my four horsemen of financial disaster must be sacrificed. I must sacrifice one, not because its not totally awesome and worthy of my time and money, but because I need to raise capital in order to nimbly reduce the cost basis of the other three.
In other words, If I am going to escape this pickle with dignity, I need to absorb a loss, move on, then put that money to work in the other 3 to bring my basis back in line with reality.
At the present, I am -29% in FEYE, -16% in SPLK, -15% in YELP and -21% in WDAY, with WDAY being the smallest of the four. Other down positions include EGRX (-11%) and IFON (-14%).
If I do nothing, I will probably have to ride these stocks through earnings, something I am not exactly keen on, considering my recent foray into high beta hell. However, if I can reduce my cost basis in 2 or 3 of the four to a level that can be reached with any strong market uptick, why, I might be able to reduce my losses from -23% to -10% in fairly short order.
The stated goal here is to get down to at least -15% within the month.
UPDATE: I utilized some leverage to average down in SPLK, YELP and WDAY, bringing my basis down to $78.77, $75.6 and $97.40 respectively.
if you get down to just 2 positions, instead of the 4 horsemen it would be the ghost and the darkness…..just sub out the 1800’s african railroad for your portfolio.
More Splunk to the face
I am guessing it will be the fire-eye that is tossed to the market gods as a sacrificial gesture
no it will be SPLK
nope, twill be the FEYE … watch & learn, my son
I agree…it shall be FEYE
only a fool would sell FEYE here
the HFT black boxes are all over FEYE .. if u trade it, limit orders ONLY!
keep feye
keep ifon too
it’s either WDAY or FEYE.
WDAY has 66% greater institutional support (although Im sure both have seen quite a bit of selling and that the #’s I used are off by a fair margin). I would think other MM’s in your position might try to lend some support to their wounded and with WDAY having greater numbers – I would think it would have greater support.
I don’t get the logic of dumping the ones with the most rubber band snapback potential (feye, wday)
he was preaching diversification in his previous blog post. they’re both cloud companies.
diversification is for old men
LOL at the guy down 20% YTD talking about buying NASDICK stocks
you have some homo to you, be honest
Your old pal Bullish is rooting for you Fly. Fuck all these monsters that are throwing mashed potatoes in these fine halls of the iBC.
Fly, I’d keep YELP for sure. It’s balance sheet(I’m a fundamental investor) is fantastic and they are a very well run company. I haven’t looked a the fundamentals of your other three holdings.
They are all good companies, just being fisted currently and unfortunately. Why? Who knows, but it sucks and is kind of boring just sitting in cash, waiting patiently.
Tuesday low of $59 was the low during this Nasdaq correction for YELP.
sell the one that is not working, IMHO.
Awesome, thanks for the value added remark.
Bears stumbling into the vice this morning?
this market will fall into the close after a mid day high. Next week is the week SPY visits the 1780’s
Short seems right…but I think this market gets into one of it’s zombie walks higher which just keeps bending the mind.
J LIvermore, good to see you joining us after blowing your boyfriend all morning
Your confused. That was your mother blowing me.
SPLK is the strongest of the four.
I am now up 1.1% for the day. I will do a post later discussing this in greater detail.
long a little Fisheye (FEYE) at 48.1 can see a move to 57 in short order
You see, being an old man I’d be on the toilet right now and filling a barf bag at times like these if I was in the market, high beta growth or old man issues,no difference. I’d rather earn a sure 2.25%/365 each day, otherwise I’d end up like J. Livermore blowing my brains out in a cloakroom.
statistically, 80% chance of revisit lower bollinger band currently around 1780 will happen within next week or 2. This is a no volume, holiday, option expiration ramp. paper tiger.
Ok, I attached a poll to this post. Please go and vote.
Thanks
Shouldn’t there be an option to hold all of them?
I can hold all 4 for a period of time. But ideally, I want to average down in 2 of them to give me the option of profit during this market spike.
by the way, given the collective IQ of the gallery here (myself excluded) FLY may indeud be well served to pull a COSTANZA on the poll results…
agree sell the one that gets the least votes
considering most of the idiots here own these ass raped pieces of shit in their own accounts vs OPM – I would think the results only show the stock with the least amount of IBC sponsorship and not the worst of the bunch.
Who is trading today anyway. Its before a 3 day weekend after the Jewish holidays. Only men at the turrets are junior grade jerk offs who couldnt weasel a day off.
GFYS,
Matt_Beer
Diversify, all 4 are extremely correlated. Get rid of one HQ’d in San Francisco.
None of the above.
The FED has front-loaded almost all the POMO from next week into this week. Beware.
SELL ALL. PUT $ INTO CSCO INTC IBM
Can we push people off the cliff today?
Suggest you hold all and hedge with options (not sure how the options trade on your names, but you should be able to buy some highly correlated options). This would allow your thesis to pan out, while you have some catastrophe insurance. Not sure if you’ve got a trader or place orders yourself – if you’re doing it all yourself then maybe keeping whatever is most liquid would make sense.
Yes Jeremy,
I sodomized your Mother while she was blowing J.Livermore. Then we pissed on her as she cleaned up her mess.
Cut that out
My apologies:)
That’s a truly rotten thing to say if it isn’t true.
Of course it is true. I’ve always been a “piss and tell.”
buy neon
Sell the only one that has sizable debt…22% debt/assets…WDAY
Consider what we chose for you to sell and then do exactly opposite
buy up some DHI
Of those 4 horsemen, there is only one that I’ve witnessed you *repeatedly* chide yourself over the past couple years for not owning more of, lower.
dump it…. dump it all
Bull trap as expected. Next week is setting up to be a doozy