Short Term Trading Week Starting: 5 Feb

Originally posted by lifeguard22 ↑

Trust me on this one: AB1 and any other stock that has been pumped up on hype (and little else) will be punished severely by the market during a time of major correction.

Along with the decrease in appetite for speculative plays, there’s just not enough evidence to justify bouyant positive sentiment. At least with mining stocks you can point to hard assets to give you hope. AB1..? Their biggest play - CryptoKitties - just picked up an aggressive competitor in search colossus Baidu today.

Game. Changed. No hard assets. No hats. No trucks. No shovels. No... hope..?

That’s not a personal dig at you or your trading strategy, but there are certain types of companies I really would not to want to be holding at this time...

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Is the value of the Crypto Kitties linked to anything? i.e Bitcoin/Crypto's? or just based on who's stupid enough to pay for one....

Crypto Kitties lol - still makes me laugh.

Originally posted by lifeguard22 ↑

Overall maybe.. up $1000 all things considered...? Lost on some, small gains on others.

I just looked at the whole picture, and had to really zoom out from even my high-conviction positions on where things are trending (eg with EVs etc). It’s a bit of a sad day when you know that certain companies can, and will do very well, but the overall market is suppressed so much that it just doesn’t make much sense to even ‘ride it out’.

Re: holding until they come good Dexter - that was my position, and I’m not one to shy away from a small loss if the FA stacks up. However...I think.. this will be a multi-day rout, which means that for certain stocks ‘coming good’ will be a multi-month affair; and the simple maths of that just doesn’t stack up.

Like I’ve cited above, if any one of my Lithium faves releases an announcement now, they are going to be fighting against some pretty heavy sentiment to make it back to green.

Here’s two examples (there are many).
1) VEC was a bit of bellweather: pretty good announcement about their JORC and resource (hot sector etc) and today down 18% with the rest of them.
2) ARV - gold (!) - announces an additional funds extension ($9m now, at $0.2) and it is sitting firmly below the CR at $0.18.

Those examples tell me that the market has started to ignore any macro or micro value indicators and is now fixated on the trend.

And the trend is down.

For now.

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Tough break, but these are the greatest lessons to be learnt - next time maybe you/we/us will be more prepared. Even just being a day or 2 earlier in liquidating can make a huge difference. As discussed yesterday, I exited my larger holdings yesterday morning, but even so, still could've been a day or 2 earlier with the warning signals around - but I guess to a degree, we want to be sure it will be a bloodbath so as to not make any rash decisions. We humans are reactive by nature - live and learn.

This won't last forever and soon enough it will all be forgotten about. So now is a good a time as any to be researching the best value plays around and those with quality assets that have showed resilience. All in the name of being ready to pounce when the tide turns.

Seeing a bit of talk around about the sharp dip on the DOW being a result of 'rise of the machines' - wouldn't doubt it for a second. Highly engineered and programmed to spread as much fear 'machinely' possibly imo.