General Electric (GE)

Despite good news about General Electric (GE) divulging some of its assets to pay down its debt, GE dropped -7.50% this week. Many analysts believe investors aren’t happy with GE’s Board of Directors announcing a reverse 8:1 stock split which would effectively raise the stock’s share price to more than $100 but also divide all exist holdings by 8 (i.e. shareholders will hold 1 share for every 8 they held before the reverse split). GE definitely earned itself the Week’s Biggest Loser spot.

What is the Recovery Speculation Basket?

The Recovery Speculation Basket (“Recovery Spec”) represents stocks that will thrive if vaccines are released quickly and we return to normal but have the likelihood of collapsing if more lockdowns occur. These positions are too speculative to have their own allocation and share a single allocation.

Currently, my Recovery Spec stocks are as follows: the Airlines Exchange Traded Fund (JETS) and Carnival Cruise Lines (CCL). They are listed as a single allocation in the portfolio breakdown chart each week. 

Strategy Update: Getting More Aggressive…

It was a weird week as I made a few purchases in my typically more conservative Investments in Play portfolio, but made absolutely no moves in my Speculation in Play portfolio.

Now, don’t get me wrong, I always have buy and sell targets for all of my positions, but even with the Tech Wreck selloff, it became readily apparent to  me that I was being far too bearish with almost all of my speculative positions.

While I typically don’t post my price targets for my speculative plays for two reasons 1) they’re incredibly volatile and will likely lose money, and 2) I typically change my targets so quickly that they’ll become outdated.

That being said, readers have reached out for an update so here we go, these are the next buy price target for all of my positions (keep in mind – these are the next buy price targets, not the last… I always have powder on the side to add at much, much lower levels):

• AMD (AMD): $67.83 (down -16.311% from current levels)
   
• Carnival Cruiselines (CCL): $18.56 (down -34.786% from current levels)
   
• Chevron (CVX): $66.65 (down -40.256% from current levels)
   
• Draft Kings (DKNG): $55.03 (down -23.303% from current levels)
   
• General Electric (GE): $5.56 (down -55.803% from current levels)
   
• Airlines ETF (JETS): $19.60 (down -29.191% from current levels)
   
• Pinterest (PINS): $42.73 (down -40.446% from current levels)
   
• Palantir (PLTR): $21.20 (down -21.248% from current levels)
   
• Plug Power (PLUG): $33.55 (down -28.995% from current levels)
   
• Virgin Galactic (SPCE): $17.65 (down -48.915% from current levels)
   
• Tradeweb Markets (TW): $46.70 (down -37.028% from current levels)
   
• Uranium ETF (URA): $17.31 (down -8.558% from current levels)
   
• Yeti (YETI): $43.46 (down -39.038% from current levels)

Now, looking over those price targets, it might seem like I’m still not aggressive enough, however, given the extreme volatility of the market and the edginess of traders, most of these positions were within these targets just last week.

Crazy.

At any rate, if you want to learn more, check out my article How to Make a Trading Plan which discusses strategies and techniques to ensure you’re ready both on the way up and the way down.