Virgin Galactic (SPCE)

When founder Richard Branson sold shares in Virgin Galactic (SPCE), other investors got nervous, causing the stock to crash -20.22%. Now, SPCE does this all the time, but that doesn’t make it any easier to watch this volatility magnet once again earn the spot of the Week’s Biggest Loser.

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. 

Still No Moves?

Nope, still no moves. It’s been a few weeks now with no action in the Speculation in Play portfolio, and while several of the portfolio’s positions are in downtrends, the S&P 500 and the rest of the indexes remain at or near record highs. That means, this is not the time to speculate when speculation is frowned upon in favor of consistent cyclicals that earn decent profits during an economic recovery.

Sure, some of my positions may already be at their lows before they bounce, but I’m in no hurry to throw money to work in these positions until they get to levels I can’t resist.

In case you were wondering what price levels those are, here’s an updated shopping list for this unloved portfolio of misfit stocks:

Advanced Micro Devices (AMD): $65.15
Airlines ETF (JETS): $21.40
Carnival Cruise Lines (CCL): $23.85
Chevron (CVX): $80.10
Draft Kings (DKNG): $50.55
General Electric (GE): $5.60
Palantir Tech (PLTR): $20.25
Pinterest (PINS): $45.75
Tradeweb Markets (TW): $60.90
Uranium ETF (URA): $17.95
Virgin Galactic (SPCE): $19.15
Yeti (YETI): $47.90