Posted on 24 Feb 2021
With the stock market in red for the past few days, wondering if Seedly community members are
Buying more stocks which they plan to hold long term
Selling off any short term stocks to cut losses
Not doing anything, waiting for market correction
Continue to DCA regardless
Curious to hear your thoughts and why! If you're comfortable with sharing your stocks picks as well please do!
Chris, Owner and Writer at Tortoisemoney.com
Top Contributor (May)
Updated on 24 Feb 2021
I guess I'll start!
The last two weeks have definitely been quite the stumble, especially with the roaring performance of the market since the open of 2021. Let's take a look at where we stand (US side analysis only haha), after last night's close.
Chart for QQQ (Nasdaq-100)
Chart for VOO (S&P 500)
The dip seems to be mostly covered on the tech side, with more balanced indexes like the S&P 500 seeing much less significant dip. The QQQ chart also shows a breakdown from the channel (the blue lines) which is generally regarded as bearish, but it is also supported at 313.18 (orange line).
I think yesterday's speech by Powell set the market at ease for a while, but the volatility is here to stay for a while. Futures still look red so we might be seeing some red days ahead.
I have bought on Monday (TIGR) and Tuesday (SKLZ), but I do have half of the cash I was conserving left to fire away. For me, I'll be watching what happens tonight before deciding whether to buy more or not.
If you're DCA-ing, I would advise to just stick to your schedule and continue.
If you want to add on dips, go for it if you think the valuation is reasonable. But if you only have one shot left (limited capital), you might want to wait out since I can see more downside for the tech side at least (expecting potentially until QQQ is in the 305-307 range).
Of course for individual stocks, their performance may vary as we are still in earnings seasons (e.g. UPWK) and other factors are still in play (e.g oil). So, if those that you're looking at are moving separately from the indexes, then your strategy might be different.
Other stocks I'm watching now are SE, FVRR, ENPH.
Disclosure: Vested in SE, ENPH in shares.
Tbh I’m currently not doing anything and waiting for market correction to at least get some profits ...
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