#trends 0011 : The Shakeout

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Hi All,

First off, I have decided that starting next week, I will alter the newsletter format a little bit to align with my crazy busy schedule, while still being able to deliver gems. After this issue:

  • The #trends series will be sent out only once a month on the first day of the month. Since this issue is already so close to Mar 1, the next one will go out on April 1.

  • The watchlist section will be spun out on its own, which I appropriately named the #watchlist series and will become the weekly replacement on Sundays. The first one will go out on Mar 7.

  • I’m introducing a new series called #cryptobrew which I will also send out once a month, but on the 15th of each month. It will focus on all things Bitcoin and Blockchain. The first one will go out on Mar 15.

Now let’s talk about what happened this week, which I like to call “The Shakeout”. I call it a shakeout because I think it was a way to shake out weak hands. This entire week was rocky in the market, which generated lots of uncertainty. It ended with Friday being brutally red. While all this seemed scary, I saw it as an opportunity to go on a shopping spree and that is exactly what I did.

Here’s the thing, when there is a lot of noise around me, I like to tune it all out and focus on the facts. The facts are what drive my decisions. So here’s the fact, we know there is a new $1.9 Trillion stimulus bill, which “ironically” just got passed over the weekend by the House. This is why I called the stock market pullback a shakeout because this was 99% bound to be passed. If 2020 had taught anything, it was that the more money printing that happens, the more your cash is devalued and buying power reduced. Hence, it will cause asset prices to rise i.e. Stocks, Bitcoin, Commodities, even Home prices etc.

This stimulus bill still has to go through the Senate. Regardless of what version of the bill ultimately goes through, my point is that it will most likely pass, therefore equities will go up.


🔥 IPO Hotlist

There isn’t anything interesting I see for the week, but one IPO I spotted coming up is Roblox. This IPO moved a couple of times, but looks like it is now slated for March 10.

IPOs

  • Roblox Corp ($RBLX)


⚖️ Watchlist

Stocks I will be watching for potential upside/downside swing plays:

  • Plantx Life Inc ($PLTXF) - Plant based is the next wave and this little gem is flying under the radar. Anything in the $0.80-0.95 range on this stock is an automatic buy in my personal opinion.

  • Palantir Technologies Inc ($PLTR) - If you look at the Palantir chart, since its IPO in October till now, it has a pretty strong support level in the $22-$23 range. So this was another no brainer to buy on the dip on Friday. For a company with such a solid business model and future, this is probably the lowest you will get it for now.

  • BlackBerry Ltd ($BB) - Since the whole GameStop craze and short squeeze phenomenon, Blackberry is the only stock that hasn’t gone as parabolic yet. So my logic here is possibly watch for an entry on this one in the week as it has a real business, with solid products and upcoming future catalysts that could surprise everyone.

The following are Blockchain plays. Since I saw Friday as a shakeout, I’m convinced Bitcoin will recover by tomorrow morning, this is why I bought in on the dip heavy on Friday for:

  • BitFrontier Capital Holdings Inc ($BFCH)

  • Sos Ltd ($SOS)


🍯 Bitcoin

Bitcoin (BTC) seems to be already recovering from the correction over the weekend. Like I said, I think this will continue to rally into the next coming weeks. I’ve also entered into Cardano (ADA) as I believe this project has a lot of exciting things coming to it very soon.


🗺 One More Thing…

Be careful when buying some of those Wallstreetbets fueled stocks like $GME, $AMC, $BB etc…because brokerages are starting to add margin/maintenance requirements. So do your due diligence and read carefully before jumping in.


🔗 Links

  1. The House passed Biden’s $1.9 trillion stimulus bill – here’s what’s next - CNBC

  2. SOS Limited Brings Strong U.S.-China Management Into The Cryptocurrency Space - Seeking Alpha

  3. Palantir: Profits In Plain Sight - Seeking Alpha


As always, this is not financial advice. I use this as a way to journal my thoughts and share with anyone else interested enough to want to read this, as well as for educational purposes only.