The Lazy Trading Club

Hey everyone! I am so sorry I have been MIA for a while. I have been keeping extremely busy in my day job and for the last few months I have been focusing on getting some real estate in my portfolio. Just last week, I closed on a single family home in Los Gatos, CA and that I plan to renovate and I will post all the numbers when I finish that project. It might take me a few months to get that done though given there are some permits that I need to get approved by the county. The good thing is that I got in at $100k lower than the listed price which as you all probably know is almost impossible in this market. As you can see I am currently sitting on almost 350k and slightly beating the S&P500 year to date. Stay safe and happy trading!

Even more pain. Alibaba literally falling off a cliff (down over 6% today) along with other Chinese names like Tencent, Nio, Baidu and JD. Overall, I am down more than 20% on my Alibaba position. The drop came after the Chinese government announced that there may be more regulatory guidance coming for tech firms in China. Seems like institutions are bailing because they can’t bear or loss they are taking for being over allocated to these names but I won’t be surprised if these huge weekly drop is a result of forced liquidation of a number of funds who thought Alibaba will never reach this level. Either way, I am going to just sit tight and wait for the chips to fall.

Aah more pain..got to stay strong.

More pain for Alibaba holders as a result of news from China as they publish more rules for tech companies to abide by. I am going to hold on to the stock on this wild ride.

Another drop in Alibaba but the loss got off set by gains in other positions. I have been moving between 303-307k for more than a month now because of the weakness in Alibaba, AT&T and Lockheed Martin. When these stocks turn, it’s going to be glorious for my portfolio.

No new trades for today. Just waiting for the existing trades to work out.

Sorry I have been less active this week because my day job has been pretty hectic. My portfolio keeps moving sideways as the gains in short vol positions and long SPY is offset by drop in Alibaba, AT&T and Newmont. I am going to continue to hold these being fully aware that it could mean that I will underperform the market for few months. I might ramp up my short vol positions though to make net gain as I wait for the stocks to turn. That would mean that I am assuming more risk though. I need to do some analysis this week to decide on next steps.

Opened a new short VXX put expiring next week.

Single handedly taken into the red by…you guessed it Lockheed Martin! The stock dropped because of CFO’s exit due to personal reasons. Lockheed Martin issued a statement to SEC saying the exit was not related to any disagreement on company plans or accounting/finance reasons. However, the market didn’t like this and the stock went down. It’s now ~10% down from its highs eating significantly into my profits (still ~6% up on my position). The defense budget is expected to go up under President Biden due to pentagon retiring a lot of older weapons and equipment. Lockheed Martin is also undervalued based on its own historic multiples but the market keeps on ignoring the stock. I will continue to hold for now.

My portfolio is moving sideways due to strong down trend in Lockheed Martin and Alibaba (aided by down to sideways move in AT&T). Till now I am able to balance that with gains in other parts of my portfolio. This will help me outperform when the tide turns for these stocks; just need to be patient.

No new trades for me today. Alibaba beat earnings but disappointed in revenue and led to weakness in the stock. M

Nothing eventful but the daily chart on SPX is not looking good, it seems like the momentum is running out of steam so we might see some more sideways to lower move in coming days.

My portfolio has been moving sideways due to underwhelming earnings by most stocks in my portfolio. I am kind of surprised how almost all of them missed expectations lol (all but NOW). All of them are fundamentally very strong which makes it even more surprising. This just goes on to show that you can never eliminate complete risk in the stock market, sometimes all your stocks will go down together even though rest of the market is up.