MU October 31, 2021

[Triplethought]

Well, my basic plan atm is that when the Dow is floating near the top of the 36k to 39k range and bullish sentiment is high (maybe in Jan. - Feb. 22?), I will take a look at all the "unsanctioned" T.I. plays I hold, as well as my non-T.I. portfolio, and likely sell significantly to de-risk the portfolio, and increase USD cash holdings. For me, taking profits triggers significant capital gains tax, and I would prefer to hedge with some type of short futures strategy, but I lack experience in doing this. Maybe T.I. may assist, when the time comes?

Currently, I view Dow 36k - 39k as the "Zone of Death," or "the Killing Fields." After spending some time in this range, I am speculating that the bulls will get slaughtered here. I see the Dow range-bound between 29k and 39k in 2022. Lots of civil unrest, etc. Fights everywhere. Personally, gonna continue working on worshipping Silence - I've been an extremely poor devotee to date.

I've read that it's much harder to make money shorting stocks. Certainly I've had my ass handed to me this year buying options, even with Sol's trend blazer guidance. At this point I still like selling puts on stocks we want to own, but I'm starting to think buying calls is not the way to go. Buying stocks assuming they'll go up in a bull market seems like nostradamous predicting there will be an earthquake in San Francisco. Like "no shit sherlock". But saying there will be an earthquake of x magnitude (strike price) by Jan of 2023 (expiration date) is a whole different level of prognosticating.

[SOL]

insane reaction on CHEGG (that was recently closed here) due to missing estimates. Now down by 46%, is this smth TI would consider as opportunity (as reaction seems exaggerated) or the stock is burned for TI? happy to hear reactions.

"Chegg registered net revenues of $171.9 million, missing the Street’s estimate of $174.54 million. Net revenues were, however, up 12% from the same quarter last year. Chegg services revenues rose 23% to $146.8 million.

Meanwhile, third-quarter adjusted earnings of $0.20 per share came in line with analysts’ expectations. The company had reported adjusted earnings of $0.17 per share in the same quarter last year."

I agree but most individuals are not ready to think in the long term. Even amongst our subscribers, less 36% understand what long term means when it comes to investing, This is better than the crowd, where only 10% understand the meaning of this concept. So from a long term perspective, CHGG is a good investment. Unofficially it is a good time to buy. We will monitor for it a bit before issuing entry points

[AstuteShift]

This stock is an example of a good buy

Just like AMD was in the 5 dollar ranges and no one believed in them and bam

Same with NVDA in the past

[SOL]

This stock is an example of a good buy

Just like AMD was in the 5 dollar ranges and no one believed in them and bam

Same with NVDA in the past

All of us at TI are using this dip to purchase new shares. We closed our positions when the stop was triggered and are now using this opportunity to purchase 2X more shares. The average investor is not ready to jump in at this level. When we announce new entry points we will mention that we already have a position as it will be the right thing to do. Normally we wait up to 76 hours before getting into play after announcing it.

[Triplethought]

This stock is an example of a good buy

Just like AMD was in the 5 dollar ranges and no one believed in them and bam

Same with NVDA in the past

All of us at TI are using this dip to purchase new shares. We closed our positions when the stop was triggered and are now using this opportunity to purchase 2X more shares. The average investor is not ready to jump in at this level. When we announce new entry points we will mention that we already have a position as it will be the right thing to do. Normally we wait up to 76 hours before getting into play after announcing it.

based on this articlehttps://finance.yahoo.com/news/why-cheg ... 26137.html I just placed a limit order at $32.75. I will adjust my buy when you make an official recommendation, which if history is a guide will be below mine.

[djanderle]

Good time to buy CHGG & FISV!

I bought CHGG shares @ $34 and purchased 2 - 2023 calls as well
I did the same with FISV @ $100.25 and 2022 calls

The Calls are up and the stocks are about even.

[Yodean]

I've read that it's much harder to make money shorting stocks.

I generally don't short anything that's in a primary degree bull market. What I am referring to is when you are sitting on a lot of unrealized gains, and there is a high probability that a significant correction is around the corner - you could sell, of course, but that would trigger capital gains tax.

An alternative is some type of hedge, using shorting futures/options/inverse ETFs, etc., while not selling your profitable assets. So you don't incur the realized capital gains tax, while the shorts partially protect the value of your portfolio in the event of a market drawdown.

I am hoping T.I. will speak to this at some point.

[AstuteShift]

Shorting is high stakes compared to just buying puts

When the trend turns negative the game turns reverse

Buy puts when the market reverses upwards or use bear ETFs until the market gets decimated

This has not happened for a long time and I don’t hold or anticipate at this point of the game for the trend to turn negative. This market is fueled by easy money and the FED will continue its printing press regardless of what trash experts believe

[SOL]

I've read that it's much harder to make money shorting stocks.

I generally don't short anything that's in a primary degree bull market. What I am referring to is when you are sitting on a lot of unrealized gains, and there is a high probability that a significant correction is around the corner - you could sell, of course, but that would trigger capital gains tax.

An alternative is some type of hedge, using shorting futures/options/inverse ETFs, etc., while not selling your profitable assets. So you don't incur the realized capital gains tax, while the shorts partially protect the value of your portfolio in the event of a market drawdown.

I am hoping T.I. will speak to this at some point.

You can short futures which is very high risk, or use options (buy puts) with at least 6 months of time premium when you think the markets are about to correct. Good options to look at at DIA options, or OEX (higher risk but higher reward). In general if you are not going to sell your holdings then you should allocate roughly 10% of your holdings to purchasing puts when the time is right as a hedge

[Yodean]

You can short futures which is very high risk, or use options (buy puts) with at least 6 months of time premium when you think the markets are about to correct. Good options to look at at DIA options, or OEX (higher risk but higher reward). In general if you are not going to sell your holdings then you should allocate roughly 10% of your holdings to purchasing puts when the time is right as a hedge

As always Sol, thanks for this.