There are fires, flooding, covid, etc.. But the markets just keep going down day after day, week after week. This will be the worst market crash since 1929. I wish it wasn't so, but the Federal Reserve has thrown multi trillions of dollars into the economy, they don't havey very many tools left in their tool box. If the market rolls over soon the economy will collapse like 2008.
J
Here is my tip: DO NOT listen to the news or the so called market "experts". Investing is L O N G term.
E
Long term investor here. Love XLK. My Finance professor recommended XLK to me in college. This pick is golden.
M
If the price action after the split isn't strong, I'll be short. I'm long oil going into the fall. Good trading!
M
So... When does XLK reprice the split of AAPL shares, and will that mean a lower price on XLK here in a couple days? Or will XLK maintain the pre split value until what date? Anyone know?
M
Okay I'm loaded up on puts... Good luck to longs, but after today I see the rocket has spent its fuel and we need a few weeks to relaunch investor enthusiasm after just going up all summer. Good Trading!
confession: I bought the dip at the open. $XLY and $XLK. Things are going well so far
g
Bought this when it was 20.00, I just let it ride
M
"Common Sense Investing"
You can only get rich, by multiplying, your money, and the market’s money.
You buy two shares of stock for $5 each, total of $10, the stock doubles, you’ve got $20. Now, you sell one share for $10.
You have just made back your original investment and you still own one share of stock—a freebie.
The market has subsidized your free ride.
"Common Sense Investing"
WHY ARE YOU INVESTING IN THE STOCK MARKET?
Is it to support a company, or to support yourself? IT'S HARD TO DO BOTH.
Investing is a mindset. Do you want to buy stocks or make money?
J
for the experts here, what is a good entry price into XLK? thanks in advance for any help provided
P
I’m never selling this again. This is now a core holding in my IRA. Yes, it’s expensive but you have to own it. So many good companies in this ETF.
M
Bought 250 shares today at 75.89. Will continue to add during this sell off to add 1000 total. Important week to cost basis to add during these dips
h
Went Long put on this today. Post split typically means under performance of an equity and $AAPL is 24% of the ETF. The current RSI value is north of 80. I looked at the previous 3 year daily charts to look for similar technical levels and here's what I found..
0.2% Loss 11/7/2017 RSI 82.49 Close 63.66 IV 13.62% 12/1/2017 RSI 44.48 Close 63.51 IV 18.7%
9.8% Loss 01/22/2018 RSI 79.92 Close 68.76 IV 17.46% 02/07/2018 RSI 32.39 Close 62.01 IV 32.93%
10.3% Loss 04/23/2019 RSI 79.73 Close 78.75 IV 17.71% 05/01/2019 RSI 33.32 Close 70.63 IV 29.74%
27.04% Loss 01/22/2020 RSI 80.19 Close 97.89 IV 18.06% 03/23/2020 RSI 35.23 Close 71.42 IV 62.36%
09/01/2020 RSI 82.48 Close 125.91 IV 34.75% All Cases Moved down to 2 standard deviations below the 50 day SMA before bottoming. Given the ETF breadth that puts a target of around 100$ on XLK.
k
I am buying $108 PUTS.....these are do for at least a 5% pullback....reality check is coming.....even tech companies will see weakness in business....think about Schools, small businesses etc. that won't be purchasing their products.....DOMINO EFFECT!
G
This ETF is incredible, their positions in Apple and Microsoft tho!
w
40%holdings between MSFT and AAPL?
A
Love seeing the XLK love here. I bought in at $80 last year, sold at $136. Wondering if now is this time to get back in or wait a bit. Thoughts anyone?
R
Got to return below 100 before I will consider buying; too full of hot air at 110
I really like Morgan's call on $MSFT of an almost 50% return within 12 months time, just like I did when they put a similar target for $AMZN at end of last year. However, as I've pointed out before, as an investor I prefer to allocate my money to a leveraged index fund/ETF rather than specific stocks. As we saw with $FB, single stock headline risk is a reality. So although Amazon & Microsoft have both outperformed the $XLK in the past approx. 3 years, AMZN: 250%, MSFT: 120%, $XLK: 65%...
However, the 3X Leveraged Technology ETF- $TECL - has had a return of 235% quite similar to Amazon's, with a Sharpe Ratio of around 1.55 vs. 1.72 for MSFT and 2.01 for AMZN. To me, the slightly higher risk that you endure for receiving somewhat lower excess return is not a bad thing considering the alternative, which is headline specific stock risk...but of course that all is true if your main thesis is that tech stocks will be positive for the year. Otherwise, if you believe, like I do, that it is quite impossible to predict where stocks will end up by end of year, the next best possible decision, is to look at your portfolio at the end of each week, deciding if you are staying long, going neutral, or selling short your leveraged ETF's...
With all that being said and regardless of all this, since I am a contrarian I will not follow my own investment thesis about index investing, I will trust what the professionals at MS, JPM and others recommend, just like I described back at the end of January.
And with that, I hope whoever is reading this now understands through my detailed demonstration, why a contrarian is forced to follow financials and not their own investment ideas...
Cheers, AP
j
April 28th we are recovering for now which is good sell the news
You can only get rich, by multiplying, your money, and the market’s money.
You buy two shares of stock for $5 each, total of $10, the stock doubles, you’ve got $20. Now, you sell one share for $10.
You have just made back your original investment and you still own one share of stock—a freebie.
The market has subsidized your free ride.
"Common Sense Investing"
WHY ARE YOU INVESTING IN THE STOCK MARKET?
Is it to support a company, or to support yourself?
IT'S HARD TO DO BOTH.
Investing is a mindset.
Do you want to buy stocks or make money?
0.2% Loss
11/7/2017 RSI 82.49 Close 63.66 IV 13.62%
12/1/2017 RSI 44.48 Close 63.51 IV 18.7%
9.8% Loss
01/22/2018 RSI 79.92 Close 68.76 IV 17.46%
02/07/2018 RSI 32.39 Close 62.01 IV 32.93%
10.3% Loss
04/23/2019 RSI 79.73 Close 78.75 IV 17.71%
05/01/2019 RSI 33.32 Close 70.63 IV 29.74%
27.04% Loss
01/22/2020 RSI 80.19 Close 97.89 IV 18.06%
03/23/2020 RSI 35.23 Close 71.42 IV 62.36%
09/01/2020 RSI 82.48 Close 125.91 IV 34.75%
All Cases Moved down to 2 standard deviations below the 50 day SMA before bottoming. Given the ETF breadth that puts a target of around 100$ on XLK.
However, the 3X Leveraged Technology ETF- $TECL - has had a return of 235% quite similar to Amazon's, with a Sharpe Ratio of around 1.55 vs. 1.72 for MSFT and 2.01 for AMZN. To me, the slightly higher risk that you endure for receiving somewhat lower excess return is not a bad thing considering the alternative, which is headline specific stock risk...but of course that all is true if your main thesis is that tech stocks will be positive for the year. Otherwise, if you believe, like I do, that it is quite impossible to predict where stocks will end up by end of year, the next best possible decision, is to look at your portfolio at the end of each week, deciding if you are staying long, going neutral, or selling short your leveraged ETF's...
With all that being said and regardless of all this, since I am a contrarian I will not follow my own investment thesis about index investing, I will trust what the professionals at MS, JPM and others recommend, just like I described back at the end of January.
And with that, I hope whoever is reading this now understands through my detailed demonstration, why a contrarian is forced to follow financials and not their own investment ideas...
Cheers, AP