May 15, 2020 

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The Week's Biggest Winner & Loser

Virgin Galactic (SPCE)

In a recession, no one can hear your empty wallet? Virgin Galactic (SPCE) dropped -22.60% this week, earning itself the spot of the Biggest Loser. Apparently, no one thinks about space travel during economic collapse.

Portfolio Allocation

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Current Position Performance

This Week’s Moves

Airlines ETF (JETS): *New Position*

I know, I know. The airlines, really? Well, this is a speculative portfolio and there's nothing more speculative (or risky) than the airline industry right now. 

The airlines got positively slammed this week with all of them reaching unbelievable lows which pushed the Airlines Exchange Traded Fund (ETF) with its cute "JETS" ticker symbol back to its all-time lows. I decided this might be a fun way to test the ol "Buy When There's Blood in the Streets" adage or, as the kinder, gentler Warren Buffett puts it, "Be greedy when others are fearful, be fearful when others are greedy."

So, why did I go with the Airlines ETF rather than putting my weight behind a single name that might see a bigger bounce off its lows?

Well, thanks to the pandemic, airlines have almost no business, and, earlier this week, David Calhoun, Boeing's (BA) CEO, said in an interview that he fully expects at least one of the airlines to declare bankruptcy which caused this tailspin selloff.

While those comments created a buying opportunity, it's hard to know which airline may declare bankruptcy. It's important to remember that bankruptcy doesn't mean "going out of business" - it means the company gets restructured. However, part of that restructuring typically means the company's stock equity gets zeroed out i.e. all investors lose all their money.

Rather than risk a play - even a speculative one - going to zero, I decided to play the sector using the ETF where I can make a play on a bounce in the sector as a whole but where any chance of my equity being zeroed out is very, very slim.

I opened my position on Thursday at $11.30 when the ETF tested its $11.25 all-time low made in March (it touched $11.27 on Thursday). From here, my next buy target is $10.00-$10.25 (a target made using Fibonacci Retracement techniques) and my first sell target will be around $16.00 followed by $18.00 - two points of resistance from prior bounces after the March selloff.

JETS closed the week at $12.00, up +6.18% from where I opened my position.

General Electric (GE): Added to Position

General Electric (GE) got slammed during the selloff which started on Wednesday following comments with Dr. Anthony Facui and The Federal Reserve, dropping through key levels where I added at an average price of $5.62.

The orders lowered my per-share cost -10.81% from $7.40 to $6.60. My next buying target is around $4.50-$4.60. With my first sell price around $10.

GE closed the week at $5.49, down -2.31% from where I added on Wednesday.