This past month saw some major activity in both the crypto and futures market that pushed me to manage and re-allocate several positions to maintain growth and edge a bit more toward defensive positions. Early this month, I sold off 25% of my stake in HVBTF, which was up over +1200% the past 6 months. I still believe in the tremendous growth of Hive Blockchain, being the leader in Ethereum mining operations and a top candidate for ESG (Environmental, Social, and corporate Governance) investing in the blockchain space. I locked in my earnings for the year ($100k) and opted to convert 50% of that into a balanced account based on my thesis for this quarter: Smart Society.
Currently, I have 12 thematic baskets in sub-sector industries that I plan to manage this quarter:
- Smart Chip
- Smart City
- Smart Data
- Smart Drugs
- Smart Energy
- Smart Home
- Smart Money
- Smart Transport
- Space Force
- Blockchain / AI (Retirement)
Most notable of these new positions is $MNMD. This psilocybin and LSD treatment research company debuted on Nasdaq last week and I was able to pick up a sizable share amount prior to its up-list from the OTC market and capitalized on the arbitrage. I did not, however, cash out the following day. I’ve decided to hold for a while to see if it will gain upside once hedge funds and institutional buyers start picking it up. I will however, set a stop at my entry level to protect my initial capital.
I had been waiting for the Coinbase, Inc. IPO ($COIN) for over a year and even tried to join in the pre-IPO after my brokerage lowered the entry barrier for accredited investors. Because Coinbase opted to list on NYSE directly, only select private investors were able to get pre-IPO shares. On the day of the IPO, I watched it spike above $400 and tank below $300 in minutes. It was exciting to watch and I accidentally bought 100 shares on margin at $332.19 and closed it a minute later at $332.88 (phew). I’ve fat-fingered orders before but this one was an auto-send setting I immediately caught. I made $69 in one minute. Not bad. I fixed my order and entered shares at $333. The next few days would see a continuation of selling pressure that took $COIN all the way below $290 this last week. I failed one of my strategy rules by not selling it at -10% stop loss but because I waited so long for the IPO, I was anxious for a bounce and held. I let my emotions get away with logic so I will be defensive this next week as we approach $COIN’s earnings report.
Another notable change is my return back to commodities and REITs for this quarter. This is a hedge and a speculative allocation based on my overall thesis. Seeing the recent rally in lumber, metals, and infrastructure companies, I am projecting expansion in homebuilding and city expansion so I pulled together sub-industry benefactors with the most solid fundamentals and growth potential. Along with that, I’ve placed a bit more toward $REML (leveraged int’l REIT ETN), $AMT (5G tower leasing), and homebuilder etf $NAIL.
For commodities, I’ve allocated even amounts to food etf’s $CORN, $SOYB, $WEAT, $MOO, and $JO to set aside as demand increase with the re-opening of society.
Crypto has also seen tremendous support and hype through news wires and retail forums. In particular, support of BTCUSD once it dipped under <50k became evident as it rallied right back up to >55k, indicating to me that there is definitely more excitement for crypto to come and more institutional buying is taking place. ETHUSD is now at all time highs and alt-coins like XRP, XML, TRX, ALGO, DOT, ADA, etc are seeing some massive gains.
The hype news lately has been on NFT and DOGECOIN which I actively avoided for now. I do not plan to play these hype stocks but I am not dissuading anyone from betting the farm on it. What other people do with their money is their prerogative and I am happier sharing what I’m doing than telling others what they should do. Likewise, I learned that I can’t stand other people telling me what to do with mine. I’ve proven to myself (and others) that my thesis and money management skills far outpace others at my level so I’m sticking to what works for me while listening for how I can improve my strategy versus taking on others. So far, it’s worked out for me but I’m also careful of being humbled by the market again, which I know can come at any time.
That said, I am excited for friends who are doing this new investing thing right. I know of my son’s friend who bought THETACOIN last year with his unemployment money and made +500% out of it. I know of another friend who bought into TRXCOIN and did the same. Some folks recently started buying stocks and crypto for some exposure and I think that is great. My only worry is that their fear and greed and will consume them the same way mine did for years (and still do sometimes), but I’ve accepted that everyone has their own journey. I hope some paths cross mine so I can sojourn toward success with company in tow.