Longer-Term Core Portfolio Trades
These are longer-term holdings I recommend that you have positions in. I’m not a long term investor so by long term I’m not talking years per se but weeks to a few months. There is of course still a healthy positive skew and risk-reward embedded in all of the trades and I’ll be providing Stop/upside guidance and updates. Will typically be single stock names. These picks I will have discussions about every week but won’t change positions with much frequency.
The Core Portfolio recommendations will all be in terms of full units of 10K on a 100K portfolio. Therefore we can have 10 positions maximum and any non positions will be cash.
Weekly Trades
LONG GDX: BUY LIMIT 23 Sell Stop 15
Option Play: Buy 4/17/20 GDX 22Calls. Limit buy up to 4
LONG MICRON (MU): LIMIT 40 Sell Stop 27
Option Play: Buy 5/15/20 MU40 Call Buy limit 6
GDX is the Gold Miners ETF which has been a victim of the mass liquidation of all stocks and ETF’s. Though Gold has not performed yet as expected and gave back early gains. The mining stocks have been sold WAY too low.
The mining stocks have lagged the commodity by 40% since August and 24% in 1 month. If we look at this 5-year chart last time GDX traded down at the $20 levels, the underlying Gold commodity was down under 1200… Right now it’s hovering near 1500 with a good chance to go higher. If Gold does nothing GDX will snap back with the market once it settles down If Gold squeezes higher than you’ll see a huge move up in GDX.
Micron is another company who’s stock is getting massacred with the broader market but they have upside on the other side of Coronavirus. This memory chip manufacturer stands to gain A-LOT on the growth of cloud computing, as many companies that shifted work to remote, will stay remote.
I wanted another TECH play and was tactically waiting for a bit of the selling to get exhausted which I think will occur this week.
