October 11, 2019 

Portfolio Allocation

Current Position Performance

Highlights from the Week

Biggest Winner: Yeti (YETI)

As insanely volatile as Yeti (YETI) is, at least it’s consistently volatile, right? Yeti once again shoots from the mid-$20s to the low-$30s and higher in no time flat, locking in +11.70% gains this week to earn itself – once again – the title of Biggest Winner.

Biggest Loser: Canopy Growth Corporation (CGC)

The consumer sector has very quickly established itself as the Rodney Dangerfield of the stock market – “it can’t get no respect.” Our only hope is that it doesn’t take this sector the multiple decades Dangerfield required to become famous. Canopy Growth Corp (CGC), the flagship for the sector, is also its biggest loser this week losing -15.23% amid the ongoing vaping crisis and a myriad of other drastic issues affecting cannabis. Blech.

This Week’s Trades

BiliBili (BILI): Added to Position

BiliBili (BILI) sold off with the rest of the market on Tuesday, shooting through my $13.59 target which triggered a trailing stop filling at $13.28.

Side note: Now that Charles Schwab offers free trading, I am no longer using Robinhood for my speculative account which lets me take advantage of Conditional Orders, a feature offered on Schwab’s free StreetSmart Edge platform which allows traders to set key variables that must be triggered before an order is placed.

In this case, I set the software to place a trailing stop order once BILI dropped to $13.59. Instead of filling at my target of $13.59, the trailing stop order didn’t fill until $13.28 which enabled me to buy my shares at a -2.28% discount to my initial price target. The risk to trailing stop orders is that if the price whipsawed to the upside, my order may have been filled at a higher price than my initial $13.59 price target as trailing stops fill using market rather than limit orders.

The order lowered my per-share cost by -1.89% from $15.34 to $15.05 with my next buy target for BILI at $12.54.

BILI closed the week at $14.37, up +8.21% from where I added on Tuesday.

Cronos Group (CRON): Added to Position

Cronos Group (CRON) continued to suffer from the cannabis sector selloff on Thursday, triggering a trailing stop-loss buy order I had placed at $8.42 which filled at $8.3250 (yes, Charles Schwab trades out to the 4th decimal point).

The order lowered my per-share cost -5.97% from $11.88 to $11.17. 

Then, on Friday, the bottom dropped out for the cannabis sector. While the rest of the market flew higher, cannabis stocks plummeted further with CRON triggering another trailing stop order which filled at $7.7398, a little over -7% lower than just one day earlier.

The Friday order lowered my per-share cost an additional -5.10% from $11.17 to $10.60.

At this point, the cannabis sector is becoming extremely oversold, however, I still have another buy target lower for CRON, this time at $6.74.

CRON closed the week at $7.85, down -2.27% from my $8.0324 average buy price.

Gossamer Bio (GOSS): Added to Position

As it’s prone to do, Gossamer Bio (GOSS) whipped around on Monday, and, as I expected, it retested its new $15.45 low by dropping to $15.46. I used the opportunity to buy some shares at $15.50 to replace the ones I sold last week at $16.70, capturing slightly more than 7% in profits and lowering my per-share cost -1.27%.

In case GOSS decides to break this level, I do have another buy target at $14.15, right around a key Fibonacci Retracement level.

GOSS closed the week at $14.83, down -4.32% from where I added on Monday. 

Revolve Group (RVLV): Added to Position

On Wednesday, Revolve Group (RVLV) once again sold off, triggering a trailing stop-loss order at $21.91 which filled at $21.95, lowering my per-share cost -6.08% from $31.59 to $29.67.

Despite being one of the IPO Class of 2019 (now seen as a definite negative by the market), RVLV is actually profitable – a rare characteristic – which is why I’m willing to continue getting overweight in the name. My next buy target is much lower at $19.63.

RVLV closed the week at $21.73, down -1.00% from where I added on Wednesday.

Yeti (YETI): Profit-Taking

When the markets rose over speculation of a small trade deal with China on Friday, shares of Yeti (YETI) catapulted to the sky, prompting me to place a trailing stop loss sell order which filled at $31.24, capturing 19.65% in profits from shares I added less than two weeks ago on October 2 at $26.11.

Friday’s sale also lowered my per-share cost -16.64% from $18.75 to $15.63. YETI is notorious for rocketing from the low $20s to the upper $30s, so I have additional sell target prices at $35.50, $37.00 and a potential new high of $41.00.

YETI closed the week at $31.79, up +1.76% from where I sold on Friday.

Questions?

As always, If you have questions about how I’m playing different positions or anything at all, really, feel free to leave a comment below!