"They make money"...

C

Cabin111

Was thinking about the market the past few days...I know many of you have been.

I know I sound like an old timer (it is what it is), but I've been through the 1987 crash, the 2000 (dot.com) crash, and 2008 crash...Not to mention the closing of the economy in March 2020.

I would see a pattern with many of these corrections. What many people would move to is stocks that had a good balance sheet and that made money though a recession.

In a few days (weeks, months), I hope to find some of these companies (mature), buy then do covered calls. I'll wait with the extra cash I have on hand. Other money will go into CD's and 2 year government bonds.

Still love this video...Just substitute "he gets on base" for "they make money" and you have an idea of my thinking.

 
Cabin111 said:
I would see a pattern with many of these corrections. What many people would move to is stocks that had a good balance sheet and that made money though a recession.
More...

I am not looking at fundamentals at all.
The only certainty about the next few monsters,
Is that they will renew their 52 weeks high multiple times.

James Roppel talks about Basketball under water.
It pays to look for stocks that display relative strength.

Leaders base while the market decline,
Leaders break into new high while the market base.

I don't want to buy beaten down stocks,
The money is made riding stage two winners (Weinstein).

Glad to see you're still there after all these ups and downs.
Hope I'll be able to witness some crazy time myself too.
Seen the Covid crash trading futures and now this.

Hope to catch the next winner with this kind of screener
Based on 52weeks high and low. Currently ...
A lot of reverse ETFs are nearing highs.

upload_2022-9-23_23-3-18.png
 
Yeah but in a bad recession, even "good" companies, companies with strong balance sheets and sound business model are not immune to crashes in their share prices. During the 2008 financial crisis, CitiBank, the largest bank at the time that has a solid business model and good balance sheet and didn't dwell in the MBS derivatives as much, still saw its share price drop from $200+ to $20+, a 90% drop in just one month!! So if you write a covered call, the puny premium on that call is not going to cover the massive loss on the underlying because the premium on options is capped at a certain amount and it won't increase according to the loss on the underlying. It would be better to buy a put instead in a volatile downtrend market because the long option's price would actually grow according to what's happening to the underlying and if nothing happens, at least all you lose is the option purchase price.
 
And I would buy USD if you have some foreign currency lying around. USD is going to go through the roof for the next few months until the Fed eases off on the rate hikes. And I wouldn't lock in any fixed income instruments or term deposits longer than 1 year or even a few months. I don't think the Fed is done with the rate hikes yet, so a laddering strategy would be better imo.
 
Cabin111 said:
Was thinking about the market the past few days...I know many of you have been.

I know I sound like an old timer (it is what it is), but I've been through the 1987 crash, the 2000 (dot.com) crash, and 2008 crash...Not to mention the closing of the economy in March 2020.

I would see a pattern with many of these corrections. What many people would move to is stocks that had a good balance sheet and that made money though a recession.

In a few days (weeks, months), I hope to find some of these companies (mature), buy then do covered calls. I'll wait with the extra cash I have on hand. Other money will go into CD's and 2 year government bonds.

Still love this video...Just substitute "he gets on base" for "they make money" and you have an idea of my thinking.

More...



Awesome video, awesome movie.
 
Cabin111 said:
Was thinking about the market the past few days...I know many of you have been.

I know I sound like an old timer (it is what it is), but I've been through the 1987 crash, the 2000 (dot.com) crash, and 2008 crash...Not to mention the closing of the economy in March 2020.

I would see a pattern with many of these corrections. What many people would move to is stocks that had a good balance sheet and that made money though a recession.

In a few days (weeks, months), I hope to find some of these companies (mature), buy then do covered calls. I'll wait with the extra cash I have on hand. Other money will go into CD's and 2 year government bonds.

Still love this video...Just substitute "he gets on base" for "they make money" and you have an idea of my thinking.

More...


Show me one stock with a good balance sheet that is up for the month. mcap over $10B.
 
destriero said:
Show me one stock with a good balance sheet that is up for the month. mcap over $10B.
More...

Not true to your category, but these two come to mind...WEAT (straight commodity) and ABBV. The US still leads (for the most part) in biotech...
 
SoyUnGanador said:
Awesome video, awesome movie.
More...


BUT. A little flaw in that clip. Brad Pitt asks fat kid if Brad should care whether a guy gets a walk or a hit, so long as he gets on base. Fat kid says no. But a hit would be preferred some of the times at least because runners might advance more. Can't believe they missed that.
 
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