The Market 2021

We are starting to get a lot of fervor about the market and we can all see what bitcoin is doing. Call volumes are high and investors are eager to invest. Unsophisticated investors are starting to pile in again. I expect institutional investors to lock in some gains at some point in the near future.

This is no concern for the long term investor. But I wanted to share what I see on the front lines.

 

I really don't get the bitcoin surge. It's always seemed crazy to me. Do you guys buy into crypto at all? A girl I know has access to a pre-public coin and was trying to get me to buy some before it goes public in like a month or two. I've held off because something just doesn't feel right with it but I've been tempted to maybe throw like just $1000 into it just in case.

Everything just feels like a bit of a bubble right now. I own a bunch of TSLA that that I'm up big on right now. Finger is definitely hovering over that sell button with how crazy it's been.

 

ive sold TSLA a few times and made good money on it but man oh man if I just stayed in in the first place....I'm even making a killing on it now after buying back in after the stock split.

I do not fully understand bitcoin or believe in it so I have never messed with it. It seems like a pure gamble.

 

Locking in gains as in you expect them to drop out and lower stock values soon? I could see that coming. The stocks I am still in are mostly all long term investments so not much concern. I dont see people dumping out of things like AAL or BA any time soon. They just have not recovered yet.

 

Yeah those are long term plays. The high flying growth stocks that crushed last year what I expect.

 

Sounds good. I'm mostly out of tech stocks and etc so no worries on my end. I still have phillips, SHOP, BA, AAL and some other stuff but I dont think anyone is ready to pull out of those yet unless cutting losses.

 

I bought into TSLA in July at the badgering of a coworker who drinks their koolaid. I'm up like 150% right now. Kicking myself for not buying even more with the way it's going. I totally view it as a bubble though and not long term. After last year's crash I bought a bunch of SQ too and I looking at it similarly. It's up like 170% since I bought it and it doesn't feel like it'll continue to trend that way either.

Like you I was looking to keep stuff like the AAL and DAL that I bought as the longer term plays. They still haven't really bounced back yet and I got them at the bargain prices.

AAPL is the one I'm mainly on the fence with on which way to go. I've held them forever being an iOS/Mac dev. It's hasn't bubbled as much as the other and pays a dividend. So I might stick with it unless I start feeling issues with the company itself.

 

Tsla and Btc are so parabolic that any new investor getting in now will have to be prepared for some nasty drawdowns imo

 

The argument I would make about TSLA, outside of the cult following, they are much more than an auto company and with the continued pace of auto along with solar, the HVAC systems they are working on and more, TSLA may just continue to grow and grow.

Maybe not though.

 

thats what I thought when I sold at 650 a share before the split.

 

If you're concerned about losing your gains on TSLA. Enter a trailing stop loss order on it. It will follow the price up and the stop loss trigger will stay at the set $ amount or % that you choose. It may give you some peace of mind.

 

No doubt. But many don't stay nimble enough to understand how fast these moves can become extremely elevated to the downside when that fomo runs out.

 

Now that we have a little market talk back into the board, I figured this would be a good article to highlight some of the possible concerns moving forward...

https://northmantrader.com/2021/01/07/clear-and-present-danger/

 

never heard of this, thats pretty cool. I should probably learn about it. So I can set something like "if x stock drops by 8% trigger a sale"?

 

Already set up for it. I learned to do that last year during the crash. After buying in low during it I thought we were going to see another crash so I looked into it and started doing it on everything that I as concerned about. It's a nice safety net for some of these bubbles.

This is the main reason I've stayed holding. They're a tech company that makes cars. It seems like they have a bunch possible revenue plays outside of the cars. If other EV brands catches on they still need home chargers and the like. The quality on those are better then their car quality.