Alphabet (GOOGL): Added to Position

Alphabet (GOOGL) resumed last week’s breakdown on Monday, triggering my next buy order which filled at $133.19, adding 2.67% to the position and locking in -11.03% in discount on some of the shares I sold for $149.71 on January 24. The buy raised my per-share cost +13.44% from $58.24 to $66.07, still a -35.18% reduction from where I first opened the position at $101.93 on September 16, 2022.

I do anticipate GOOGL could continue selling off in the event of any market pullback. Since Google’s current weakness is based on the poor performance of its AI products, the market is already falling out-of-love with the company. If the stock market entered a correction or consolidation – which would be healthy even in a bull market – Google could see additional weakness.

Accordingly, my next buy target is $121.89, above the low GOOG saw back in October 2023, and my next sell target is $199.64, just under the round-number psychological resistance of $200.00.

GOOGL closed the week at $135.41, up +1.67% from where I added Monday.

Coinbase (COIN): Profit-Taking x 2

Words I never thought I’d say back in 2022: “When Coinbase (COIN) rallied over my cost basis on Monday, I had to take profits.”

My sell order filled at $230.79, selling 12.50% and lowering my per-share cost just -0.32% from $225.66 to $224.93. However, reducing my cost basis wasn’t the point, taking huge gains and reducing my allocation was the top priority.

The sale locked in +146.18% in profits on shares I bought for $93.75 back on May 9, 2022 during Coinbase’s epic crash!

With Coinbase still overweight in the speculative portfolio, I decided to use a stop-loss limit sale order on Thursday when it encountered repeated resistance around $242. My sale filled at $236.83, selling 14.29% of the position and leaving me with an average selling price for the week of $233.81.

This sale locked in +74.01% in gains on shares I bought for $136.10 on April 22, 2022 and lowered my per-share cost -0.88% from $224.93 to $222.95. Again, the priority here is allocation reduction, not cost basis reduction.

Despite the two sales, COIN still remains overweight in the basket, so I will take additional profits at $279.94, just under a key past area of resistance. Since Coinbase has been a painfully volatile stock, I will also wait to add back to the position down at $119.71, just slightly above the lows COIN saw less than two months ago!

COIN closed the week at $256.62, up +9.76% from my $233.81 average sale price.

Tesla (TSLA): Added to Position

Since I’ve been playing with the House’s Money since mid-2020, I decided it was time to put some of those profits to work. When Tesla (TSLA) gapped-down at the open on Tuesday, it triggered my next buy order which filled at $183.37, adding 3.26% to my position.

This buy raised my per-share “cost” +9.18% from -$48.28 to -$43.85 (a negative per-share cost indicates all capital has been removed in addition to $43.85 per share added to the portfolio’s bottom line in addition to each share’s current value).

From here, my next buy target is $153.29, above a past point of support, and my next sell target is $294.82, just under Tesla’s 2023 high.

TSLA closed the week at $175.34, down -4.38% from where I added Tuesday.

Visa (V): Dividend Reinvestment

Visa (V) paid out its rather paltry quarterly dividend on Monday which, after reinvestment, raised my per-share “cost” +0.16% from -$511.38 to -$510.58 (a negative per-share cost indicates all capital has been removed in addition to $510.58 per share added to the portfolio’s bottom line in addition to each share’s current value).

Why did my cost basis raise after receiving a dividend?

Whenever all capital has been removed from a position, a dividend reinvestment adds more shares to the position, not more profits. So, the profit in the position is divided by more shares and raises the per-share cost even though the value of the entire position is also increased by the new shares from the dividend.

From here, my next buy target for Visa is down at $265.89, a point of support, and I have no plans to take additional profits at this time.