Eye on the Markets: Coronavirus Stocks/Investments thread

WildBill

WildBill

2
MrTop said:
And with tech stocks making up a record 37% of the S&P 500, the pullback could drag down the entire index. As such, it would be smart to spread your eggs a bit wider

You could look into classic anti-crisis investments like gold or blue-chip stocks. Another way to limit your reliance on tech stocks is to switch to an ETF fund that tracks the S&P 500 Equal Weight Index.

The largest ETF of this kind is Invesco S&P 500® Equal Weight ETF ---- RSP

Unlike the standard S&P index fund, this one doesn’t take into account the stock’s weight. That means an ETF fund that tracks it will spread your investment over 505 stocks in equal parts, regardless of weight.

This way, you’ll invest in a more diversified basket of America’s top stocks without banking 37% of your money on tech stocks.
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I like it, good idea. Also thinking a total US market fund to get small and mid cap exposure. They got the worst of it from the lockdowns, they should have a nice sustained bounce when things get back to normal.
 
M

MrTop

EOG Master
Hedge funds often control billions of dollars. So when they’re investing in a company, they won’t buy millions of shares all at once. Instead they’ll “scale in” to a stock over weeks or months.

They do this for two reasons: to prevent the price from spiking, and to hide their actions from others who would front-run them.

Hedge funds go to great lengths to hide their tracks. But they can’t hide volume. Huge volume is a telltale sign that hedge funds and other big institutions are buying a stock. But remember, they want to be discreet. So you’re not going to see a 1,000% volume spike.

Instead, look for noticeable increases. We’re talking 10%, 20%, or 50% above normal trading volume. This sort of rising volume often lets me know that “someone big” is buying the stock.
 
V

Valuist

EOG Master
MrTop said:
Hedge funds often control billions of dollars. So when they’re investing in a company, they won’t buy millions of shares all at once. Instead they’ll “scale in” to a stock over weeks or months.

They do this for two reasons: to prevent the price from spiking, and to hide their actions from others who would front-run them.

Hedge funds go to great lengths to hide their tracks. But they can’t hide volume. Huge volume is a telltale sign that hedge funds and other big institutions are buying a stock. But remember, they want to be discreet. So you’re not going to see a 1,000% volume spike.



Instead, look for noticeable increases. We’re talking 10%, 20%, or 50% above normal trading volume. This sort of rising volume often lets me know that “someone big” is buying the stock.
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That's true. They also like to hide buys via the options market.
 
lastyle7

lastyle7

EOG Veteran
Large volume can also mean a stock is being sold off...of course the sharp decline in price would be the main reason.
 
jimmythegreek

jimmythegreek

The opening odds start here
When I see this accelerated vix and huge tech stock sell off its like the Bellagio fountains constantly spewing with no break.
 
jimmythegreek

jimmythegreek

The opening odds start here
WildBill said:
Just as the market's rise was quite narrow, the selloff mostly is the same. Since Thursday my portfolio is down just 0.7%.
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In the shorter term this selloff has brought me down almost 6.4%. Sure the markets rise was sharp but gradual, however it's been 3 days and I'm not sure there aren't signs pointing to this trend continuing this week.
 
WildBill

WildBill

2
jimmythegreek said:
In the shorter term this selloff has brought me down almost 6.4%. Sure the markets rise was sharp but gradual, however it's been 3 days and I'm not sure there aren't signs pointing to this trend continuing this week.
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Probably right on this one. Feels like this move since April has been like betting on a Super Bowl, the parallels to sports betting are unmistakeable. Game gets opened at -7 and then news of a major injury for the chalk hits and line goes to -5 then -4 then -3.5, similar to the market plunge from late Feb to April, at which point the value guys step in and bet it. Then word gets out the injured player is getting state of the art treatment and might play, in this case its gobs of money coming from Congress and the Fed and more mainstream bettors get on the favorite in May and its back up to -5.5. Then some of those players happened to be gambling on a betting app, Robinhood, because they have nothing else to spend their money on with everything shut down and they started making some quick money. They go borrow money to get more action and line is at -6.5 in June. By now the steam followers have piled in and are moving the number back to its original -7 since so much "sharp" money must be on it, in the investment world this is the trend followers who are often accompanied by the high frequency traders trying to beat them to their moves. Then in August we have everyone buying in, the public has to have action on the Super Bowl so the line continues to go up as everyone is convinced the star player is going to give it a go and now the line is -8, in the trading world all the people and funds that got out and waited for the end of the world gave up and just put their money into the stocks everyone was getting rich on. Until the public has made all their bets, then the momentum guys get out because they see the trend dying out and some sharps see the tech trend is really dying down, akin to the Super Bowl by game day morning. Now the sharps and value guys go bet the dog with extra value, this is the selling of shares causing a move down. It could get another leg down as those in the betting public remind themselves the star player still is injured even if he tries to play. In the market's case, this is the investment world remembering there was real damage from Covid and its reaction to the economy and that they don't want to back these companies at overvalued prices.
 
M

MrTop

EOG Master
when you see days like today in the market... I open up the top draw in the old fashion filing cabinet and deposit :





SDOW = the way you short the market on the indexes.. sort of like the don't come on the crap table. Give a wink to the dealer and do not say a word. ;)
 
M

MrTop

EOG Master
My physical gold taking a beating of late.. ETF's dumped for now.. My new investment would be cold cuts..just came back from the supermarket after a while not buying any cause of health... invested in some cheese. LOL
 
WildBill

WildBill

2
Man how easy is it to be running a sports betting operation these days. DKNG continues to skyrocket doing this, according to the Rovell article:

In the filing, DraftKings said its yet-to-be-finalized financials from July, August and September will result in revenue of between $131 and $133 million. However, its marketing expenses for those three months combined will be north of $200 million.
 
Bushay

Bushay

NHL Expert
WildBill said:
Man how easy is it to be running a sports betting operation these days. DKNG continues to skyrocket doing this, according to the Rovell article:

In the filing, DraftKings said its yet-to-be-finalized financials from July, August and September will result in revenue of between $131 and $133 million. However, its marketing expenses for those three months combined will be north of $200 million.
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Tells me they have a lot of money and are setting themselves up nicely for the future. A couple steps back before taking 10 forward. Who doesn't know the name DraftKings at this point? I'd guess they are set to make a killing going forward.
 
jimmythegreek

jimmythegreek

The opening odds start here
WildBill said:
So his Tweet that drove the market down 500 points in a matter of minutes was just another lie to throw everyone off?
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I don't believe it's a lie at all. He may have proposed a targeted stimulus but just exactly how much that entails is anybody's guess considering how far these parties have been. It's going on deaf ears until an agreement is reached, and regardless of who wins I don't see this gaining any momentum well past next month.
 
P

pro analyser

EOG Dedicated
Oct 20th is the day draft king investors can start selling stock if they want(ones who were given stock to work for the company) There was a 6month period where they couldn't. Draft Kings didn't expect their stock to go up so much so they sold some to pay bills is why the drop,however still up big in just 6months.
 
P

pro analyser

EOG Dedicated
With no stimulus, sold silver, gambling it will go down before stimulus gets reached. Will definitely get back in, also wanting to pay taxes on gains because down the road the tax rate may be bigger if silver does what I think it will.
 
WildBill

WildBill

2
pro analyser said:
For game 6 draft kings 134+112 total 8ov17 under -05 Looks like suckers don't care about juice.
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Nothing new there, most of the books have terrible vig other than William Hill. ScoreBet even promoting they have dime lines for the Series. Like that should be a promo, how many years have dime lines been available for every game??? These new books trying to change the normal and have 20 to 25 cent lines for baseball. That all being said as long as you are in a competitive state there are enough outliers to make it effectively a good line, but you have to have six plus accounts to make it work.
 
M

MrTop

EOG Master
now with the legal books all you have to do is go to the website to see what the line is without giving money.. So they will get educated quicker vs the phone of years ago to know what the spread is.
 
P

pro analyser

EOG Dedicated
Pelosi executing her master plan by making it impossible to pass stimulus. Trump should have given in, because with many people hurting(no unemployment, no business loans) it is seen as trumps fault only. Trumps saving grace the market, tanking also. shades of jr ewing, a win at all cost mentality.
 
jimmythegreek

jimmythegreek

The opening odds start here
Dow down 1815 points, or 6.4% in just 3 days. Not exactly a recipe for 4 more years this late in the campaigning.
 
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