(Confessions of a Stock Operator)
Start Date: 9/20/2018
It’s been a long time coming but I finally created a LinkedIn (MSFT) page for my business, ShortMeTina (feel free to add me to your connections).
I’m not specifically sure where I will take that page and the type of content I want to create but I’ve always said; when in doubt, just start and you’ll figure things out along the way.
As it stands, it will be a page dedicated to my journey as a trader, trading coach, entrepreneur and business owner. As well as the randomness that occur in my life.
I’m rambling now, but I will stop because I really want to bring you to how I got here.
Taylor Swift is finally talking!
On October 11, 2017, Taylor Swift published a sneak peak into her gaming partnership with Glu Mobile (GLUU), the makers behind Kim Kardashian: Hollywood and Nicki Minaj: Empire.
The app is described as ‘a creative, inclusive and community-driven place for users to better connect with each other… and Taylor!”
From what I gather from the 33 second ‘First Look’; the app comes off very much like a social networking platform.
That’s right, I think this will be a place for Swift’s fans to gather, communicate and rock out to all things Taylor. With the extra benefit of having Taylor right there to engage with them.
The Swift Life seems like her very own, Facebook (Swiftbook), Instagram (Instaswift), and Twitter (Swifter) all wrapped up into one ‘Taylor-verse”.
As promised, Glu seems to be departing from the freemium model that garnished huge success as we saw with Kim Kardashian’s: Hollywood and Gordon Ramsay’s Dash.
Will this Swift centered social media platform work? I can’t say, only time will tell.
But considering Taylor Swift’s huge fan base, The Swift Life might actually have a shot at getting this company back to profitability.
The stock is currently up 5% on the news.
If you’re relatively new to the investing world, you’re probably wondering why everyone seems to be celebrating the ‘recent’ strength of the small-cap index.
As with anything else in trading, this is up for debate but many investors look to the small-cap index (RUT) as a leading indicator of the economy and the overall strength of the stock market.
In other words, the recent break out in the RUT is ‘signaling’ to investors that this bull market is real and perhaps, here to stay for a long time.
The small-cap index has lagged the S&P 500 for almost all of 2017. In fact, the index has traded within a well-defined range for most of 2017 and finally broke out last month on above average volume.
To put it into perspective, so goes the small-cap index, so goes the entire stock market.
If this indicator does in fact signal that; it may be time to liquidate all our short positions and get long or get left behind.
Look below for a comparison of all the 4 major indexes. Notice the sideways action of the Russell vs. the other indexes?
Russell trading within a well defined box for majority of 2017.
Good, Bad or Ugly comment below.
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At the heart of it; our trade ideas are generated primarily on ‘technical analysis’. By analyzing supply and demand; we make projections as to where a stock might head.
When Glu Mobile (GLUU) came on our radar it was the technical chart that said there was further upside. The upcoming ‘catalyst’, which can potentially improve their fundamentals, indicated to us, this stock has a real shot at providing investors/traders a 100% return on their money.
With an average buy level of $2.47*, we are half way there. What will provide ShortMeTina’s community with the other 50% we are seeking?
Before I get into that, let me give you a little background on this company that I’ve followed since 2012-2013.
The past few weeks has made for a very boring market. But boredom can breed ideas at times. I've watched the stock market endlessly looking for signs of life and I may have found some.
As a full-time stock trader, I speak stock market lingo every single day. Outside of my stock trading community, and to an extent some family members, it’s almost like I speak a different language.
“I wouldn’t short that stock, it’s thinly traded or lacks liquidity”. If you fully understood that statement, chances are you trade stocks. If nothing in that statement makes sense to you, then you probably are like most ‘normal’ folks and get a bit confused when tuned in to Showtime’s Billions.
Yesterday we investors saw something we haven’t experienced in quite some time. We saw a lot of ‘red’ flash across our screens. To be clear, the SPY had a pull back to the tune of 1.2%.
And while seeing your positions (if you’re long) lose value isn’t a good feeling at all; pullbacks and consolidations are all healthy behaviors for the overall stock market. Not to throw in a cliché here but like they say; “stocks don’t go up in a straight line” and neither does the broader market.
Pullbacks, in essence, are a part of the course.
Pullbacks also represent opportunities to finally get into that trade that got away from you.
How Will the Short Me Tina Community Position themselves?
After hitting a high of 240.32, the S&P 500 has pulled back some. What’s next for this market? I can with confidence say; I am not sure because like I blogged about several months ago, the markets are uncertain. Get accustomed to that!
However, if I am to use my charts as a guide, I would say we hit our first level of support today at the 235 levels.
For me to remain confident in this bull market; I would like to see another pullback to the 232-233 area.
If it dips to 228 and consolidates in this area for several weeks/months; I would begin calling the market a raging bull. And will begin to go all-in!
Those are my levels.
The S&P 500 Hit All-Time Highs!
Who would have thought we’d see this print with all the ‘uncertainty’ that has surrounded the markets? I am not sure who else predicted it but I know; I did. Read here and here.
Tina Lashley holds a Bachelor of Arts in Forensic Psychology and a Master's of Science in Mental Health Counseling and has been a stock market participant for over a decade. Currently a Full-Time Trader and Blogger of all things financial.