Get Irked Week in Review – Episode 22
January 14-18, 2019The markets are flying high this week with “positive” news on the U.S.-China Trade War and less-than-stellar earnings that weren’t AS less-than-stellar as was expected. Additional positive news caused the markets to fly, however analysts are still warning that we might not be through the woods, yet. Here’s what happened this week:
- Bank earnings across the board weren’t as bad as expected (except for Morgan Stanley, the slackers). This lack of bad news caused the markets to start roaring.
- With the market being oversold so badly over the past few months, many hedge funds are having to buy into stocks in order to ensure they beat their 2019 benchmarks. This activity is called “positioning.” Many analysts are warning that this positioning is NOT necessarily a sign we’re back in a bull market. Jim Cramer from CNBC’s Mad Money disagrees, reporting he believes the bottom is in.
- The U.S.-China Trade War is actually making progress, apparently. Trump announced that China has agreed to solve the trade imbalance. Along with the bank earnings, this news caused the market to jump higher all week long.
- The week ended with Trump saying he will make a “major” announcement on Saturday about the border wall and the government shutdown. Your guess is as good as ours as to what he’s going to announce. Regardless, his announcement will definitely affect the markets. Remember, however, that the markets are closed on Monday to respect Martin Luther King, Jr. Day.
Get Irked Updates
- With all the crazy positive movement in the market this week, we felt compelled to visit the concept of #FOMO (Fear of Missing Out). If you missed our original blog post about FOMO, you can check it out on the website.
- PG&E (Pacific Gas & Electric Co. – PCG) announced that it would be declaring Chapter 11 bankruptcy this week. We took a look back at our blog which used them as an example of “What company-specific bad news looks like” and our recommendation – sell at $22.35 despite the stock having already dropped 52.5%. PCG closed the week at $6.54 – down 70.74% from our sell recommendation and a total of 86.10% from before the news. REMEMBER: Your first loss is your best loss.
Trades in Play
- With a week like this, you just know Get Irked was busy – both in our Core Holdings and our Speculative Portfolio. Stay tuned to the Facebook group later this weekend for our weekly trading recap.
Disclaimer: Eric "Irk" Jacobson and all other Get Irked contributors are not investment or financial advisers. All strategies, trading ideas, and other information presented comes from non-professional, amateur investors and traders sharing techniques and ideas for general information purposes.
As always, all individuals should consult their financial advisers to determine if an investing idea is right for them. All investing comes with levels of risk with some ideas and strategies carrying more risk than others.
As an individual investor, you are accountable for assessing all risk to determine if the strategy or idea fits with your investment style. All information on Get Irked is presented for educational and informational purposes only.