Update: Path forward in march
I wanted to provide you this short update about path forward in march and how we plan to play this volatility
Dear Alpha Investors,
I wanted to provide you this short update about path forward in march and how we plan to play this volatility. Supreme importance should be given to not trade this volatility with emotions but with information, facts and technicals.
First if you missed reading my last update: please read it here
If you are still waiting on sidelines this is the time to make good entry, many stocks are more than 20/30% down since last week. Get Alpha Investor premium today
We anticipate more weakness in the market based on the information we have at hand right now and we can see more selling days ahead, tables are not going to turn quickly or within few days. Basically if you see stocks goes up on Monday, don't assume that Tuesday would be the same and start buying frantically. We can see some choppiness.
QQQ chart looks weak here and has more room to settle down around 300, but it doesn't mean it would be sudden but it can bleed to that level slowly before we see next rally in our portfolio packed with growth stocks.
If QQQ covers and start rallying from here, we will still be good with our existing holdings. But if it does try to settle around 300 we can buy our favourite stocks again at good discount.
Our strategy in March would be to not buy risky call options, use debit spread instead to reduce risk, add to our existing holdings when they get oversold and minimize addition of new stocks in our current 2021 portfolio. We will continue to send alerts for Short term trades.
We should be ready for any more weakness further and prepare our shopping list.
Following are the stocks from our portfolio is perfect to buy again during this week, if your horizon is long term.
GILT, CLPT, XONE, API, NET, BLI, PINS
My Watchlist for this week:
I am watching these stocks to add few of them to our long term portfolio in coming weeks.
MTLS, SPCE, NNDM, XL, EDIT, FSLR, PSNL
Selling a put can be a great strategy in this market for the stock that you eventually want to buy and hold in your portfolio. How this works, please checkout this link.