Sunday, February 19, 2017
The first hit is always on the house.
Joined Aug 2, 2009
1,724 Blog Posts

OA JR. GETS A LESSON IN STOCK TRADING

My son started a Stock Market challenge today at his Middle School. Last night we bonded over discussions about “finding vulnerable short sellers in order to insert their balls into a vise” as well as “finding out what all the idiots around you are doing, then betting against them” and also my preference for “Chinese Burritos” when picking out sound companies to invest in.

He told me that his teacher was a self proclaimed master at financial markets. His rule sheet clearly illustrated this fact. Here’s his teacher’s tips to trade:

Trade What You Know – Since most know very little, this is a terrible starting point. He’d be knee deep in Nike, Sony and Doritos.

Tools to Live By: Apply a fast stochastic to your stock chart and look to buy under 20 and sell above 80. – Sounds legit.

He stated many times to look for high beta as well. This criteria has to be set to a value of 2 or greater.

There were a few other suggestions, but I crumpled up the paper and told him that we ought to “make our own rules and try to beat up your teacher.”

He gets a 500K portfolio, and a one month deadline.

What I want to know is…How would you position your kids portfolio?

I started him with a pool of 10 stocks – but five essentials to start on today. These five stocks inculde: $SHLD, $TWTR, $DEPO, $CMCM, $MEET. My five reserves were $ADXS, $WTW, $LL, $PI and $TAHO.

WWYD?

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NASDAQ TARGET HIT

Back in November, I wrote this piece about the broadening formation in equities. That pattern gave an upside target of 5800 in the $COMPQ, which was hit about 30 minutes ago.

Sentiment has significantly improved and morale is the highest it’s been in quite some time.

Color me cautious here, but I’d start shopping for short term hedges.

I think the first few market declines will all be less than 5%. But there’s a big one coming this year. Don’t forget that.

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@JACK GIVES 425,998 REASONS TO BUY TWITTER YESTERDAY

It was disclosed a few minutes ago that Jack Dorsey bought 425,998 shares of $TWTR. Nice timing.

Shares of Twitter Inc. (TWTR) edged higher in the extended session Tuesday after Chief Executive Jack Dorsey bought a large chunk of shares. Twitter shares advanced 1.4% to $16.74 after hours, following a gain of 4.5% during the regular session, which put shares at a 1.4% gain year to date. In a filing with the Securities and Exchange Commission late Tuesday, Dorsey disclosed he had purchased 425,998 shares of Twitter at prices ranging from $15.84 to $16.60 a share beginning on Monday. Prior to the filing, Dorsey owned just over 15 million shares, or a 2.1% stake of outstanding shares, according to FactSet data.

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NEED A FAVOR. WILL PAY HANDSOMELY

I need a favor. I’m heading to Oregon this weekend. I need someone with a contact at Nike to hook me up with passes to get into the employee store.

I take my boys out to a basketball tournament there each year and this year my pass fell through.

If you can hook this up for me, I will exchange your kindness with gifts. Email me at jeff@tradingaddicts.com if you’d be willing to help me out.

Thank you.

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