Get Irked – Week in Review – Episode 7

The Get Irked Week in Review

Episode 7 – October 1-5, 2018

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In the markets:

•  Last Saturday, the SEC and Elon Musk shocked the markets by reaching a settlement. Tesla spiked from $260 to $305 before the market open Monday. Don’t worry – Musk is still crazy (see a few bullets down)! •  The big news this week was rising interest rates combined with a mixed jobs report on Friday. The combined events caused the S&P to dive 2.47% from its weekly high before recovering slightly from its lows Friday afternoon. The Dow dropped 2.62% from its weekly high and recovered slightly, too. Providing quite a shock to the system, it’s difficult to determine what next week will bring. •  On Thursday, October 4, Elon Musk (TSLA) tweeted: “Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!” For those not in the know, SEC actually stands for Securities and Exchange Commission 😉. Given that Musk’s settlement won’t be finalized until October 11 and the epic sell-off on Thursday and Friday, Tesla’s stock price collapsed from the low-$300s all the way back to $260.  

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Getting Started – Tools & Resources:

•  This week’s epic drops had us revisiting both the Three Day Rule and the Trader Tip: “No one made a dime panicking.” It’s easy to say “buy the sell-offs” but even seasoned investors have to push through emotion during the stomach-flip of a big drop to hit the buy button.  

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Trades in Play:

•  Our new recommendation, StitchFix (SFIX) reported disappointing growth on Monday. The poor earnings report took it from its high of $46.67 on Monday on a sickening swan dive to a low of $25.80 on Friday (a drop of 44.83%). Analysts are mixed with some continuing with a bullish outlook and others proposing SFIX could potentially reach its ~$15 IPO price. If you don’t already have a position, it’s better to wait a quarter (or at least a few weeks) to see what the future holds for this play. SFIX continues to remain profitable and has growth plans for the future. Its earnings, combined with potential buyout possibilities, provide the fundamentals for us to recommend holding it (not yet taking the loss) if you do have a position, but use great care before adding to your existing position. •  This may have been the busiest week in years for Irk, certainly the busiest week in Get Irked’s short history. Stay tuned to our Facebook group for the weekly Trades in Play report. It’s going to be a big one!