Real Life Trading Fall Portfolio 2017: Third Edition
Hey rockstars, legends, legend-etts, investors, friends, fans, followers, and colleagues! What a beautiful time of year. Just hours ago, I got back from Philadelphia, PA & my wild traveling spree is being put on pause so I can get a few local items accomplished.
Like getting ready for the Real Life Trading Team Nashville end of year dinner. Plus, Real Life Trading will have a bitcoin, cryptocurrency, digital asset program coming up soon with plenty of fun and free videos along with the FREE WEEK of the trading rooms, which is right around the corner.
Looking back, 2017 is almost over. Wow. What a rush itâ€™s been! Iâ€™ve taken 29 flights, visited 3 different countries, 28 states, driven over 30,000 miles, produced over 436 hours of video content and met personally with hundreds of traders! All to see some incredible people, watch outstanding growth and witness first hand real people experience real results! Slowly paying off debts, experiencing more fulfilled relationships, taking better vacations and providing for their families! The stock market- what an incredible tool for wealth creation and generation!
2017 will be my most profitable and prolific year as a trader. Iâ€™ve made more money this year than ever before and at some point in 2018-2019 Iâ€™ll pay more in taxes this year than I made an entire year at my first salaried job (over 24,000). As it stands, Iâ€™m sitting around (not including what Iâ€™ve spent) 139.85Râ€™s for the year. Thatâ€™s combining day trades, swing trades, credit spreads (but not including investing in bitcoin and crypto currencies. Thatâ€™s a whole different conversation). HAHA!
But beyond all that, the experiences I lived, and the traders I lived them with, was pure nirvana and I am so immeasurably excited, blessed and astonished for what WE are going to do TOGETHER in 2018!!
And one of the culminations to 2017 will be this epic write up. Wow. Iâ€™ve had some real fun trading, analyzing and discussing these stocks! Letâ€™s dive in, shall we?
- Logmein- Ticker LOGM: Analysis on December 5th, 2017
With the weakness in the technology sector recently, LOGM has started grinding to a bit of a small halt. Itâ€™s certainly not going down, but itâ€™s not really going up either. I call this bullish to neutral. Which is a fine approach for bullish to neutral strategies: like bull put spreads, put sales, or owning shares and selling covered calls; which can be an eyelash on a fly more exciting when the stock also pays dividends, like LOGM.
The only trade I see at this point that I like is a 105/100 January bull put spread. One could look to sell the 105 put for $1.50 and buy the 100 put for $1.00. Thatâ€™s a .50 return on $5 of margin, or 10% which doesnâ€™t include commissions. NOT TOO BAD. Itâ€™s not amazing for a full month and a half of waiting time, but there are a few days of theta packed in there as the markets will be closed some over the holidays that are approaching. Here is my chart on it below.
LOGM price from the first article: Up $2.75 (2.5%)
2. Web.com Group - Ticker WEB: Analysis on December 5th, 2017
WEB has also been participating in the weakness in the technology sector recently. Looks like our WEB pick just never broke through the $25.49 resistance.
However, what IS exciting was on earnings. WEB gapped down right into that â€˜green earnings box/zoneâ€™ and as I mentioned in the last article, the traders who were bearish bought to cover, realizing their gain. And of course, some traders who were looking for a discount were able to hop on and ride the wave for a small gain. That chart is below.
Whatâ€™s next from here? Below are my thoughts.
The red line is the 200 simple moving average on the weekly chart. The blue line is the 100 sma.
Back in 2015 we did something similar on WEB where it kind of double bottomed off of that 200. Letâ€™s see if it can do it again. I mean, people bought down here before. Could they do it again? Even for the short term? Sure… :-)
WEB price from the first article: Down $3.05 (12.34%)
3. Apple Inc. - Ticker AAPL : Analysis on December 5th, 2017
Yawn. This puppy is just taking itâ€™s time right now. And by right now, I simply mean the last 2 weeks. As usual, AAPL had insane, just off the charts earnings. Billions and billions. And everyone Iâ€™ve talked to loves their new iPhone X.
AAPL had a brilliant retest gap on earnings and the red circle below shows some really fun trading opportunities.
Youâ€™ll notice it had a short term retest on 11/3 before going higher and then a tad bigger of a retest from 11/14 to 11/15.
Presently, AAPL is just resting in a pennant pattern. Cooling off soon, ready for those Christmas numbers to come in before she likely screams higher.
Could AAPL be a double top? Perhaps.
If AAPL closes below $166.65 at any point in December I could see a small pull back into $160, but from then, AAPL would likely get bought up. Youâ€™ll notice Victor G and a few other traders sold some December puts down there around $155. Such a glorious spot. A few other traders sold the January covered call to simply reduce their cost basis and get paid to be patient. Itâ€™s already lost half of itâ€™s value and we should consider buying to close it here in the next few days or weeks. Because if AAPL does break out and close above this consolidation pattern, $200 will be an easy 2018 target.
AAPL price from the first article: Up $17.75 (11.68%)
4. Redfin Corporation - Ticker: RDFN Analysis on December 5th, 2017
Look at this pesky animal! Wow. RDFN, going down in the books as a semi tough stock to trade. I like a challenge. It broke that support I was keeping an eye on during the last write up and just traded right down to itâ€™s IPO opening price on the markets.
And then, something exciting happened! A gorgeous morning star pattern formed! Check out that financially delicious pattern posted below!
And, if you want to see me call this bad boy in real time, click here and watch me do it in my afternoon swing trading room. *Nature boy Rick Flair* Whooooo.. we had fun with that one! :-)
Well, let me show off again. Because I looked at RDFN again, days after the above analysis and youâ€™ll see me call out exactly what it did at the beginning of the month. Click here for that video.
Okay, enough bragging. ;-)
From here, keep an eye on RDFN to consolidate a bit, chop around, but eventually press higher. If she can break out and close above $26, I would be more confident with some massively strong moves higher, at least into $34 during Q1 of 2018 on RDFN.
RDFN price from the first article: Down $3.24 (11.58%)
5. ETSY Inc. - Ticker: ETSY Analysis on December 5th, 2017
Yes! Super excited about sharing this one with you today. This stock was the one that really saved the overall â€˜profitabilityâ€™ for this portfolio season.The other part Iâ€™m excited about was we analyzed this one from day one, perfectly and â€˜paytienceâ€™ really paid off here.
If you played this bounce and pull back on ETSY, congrats. The candle looks blissful on the weekly chart.
And below is the daily chart.
If you played the below exact set up from portfolio #2, you are killing it.
Keep killing it and hold this beast. Itâ€™s a beautiful thing. Q1 2018 target is $21.50. Q4 2018 target is ultimately back to around itâ€™s IPO open of $31.
ETSY price from the first article: Up $1.08 (6.31%)
My friends, all I can say at this point is, thank you for being a Real Life Trader and helping us enrich lives! This journey we have been on together is truly inspirational! I am so eager and amped to continue helping people from all around the world fully understand and grasp that financial freedom is in your mind. Simply find the tools to extract it and find the market place on which to sell it!
You are amazing!! Thanks for reading! Have a great easy of your week and please, massively enjoy the upcoming holiday season!!
Your semi-humble CEO ~ Jerremy Alexander Newsome