This year started out great with a Monday that saw a big jump in $TSLA after the better-than-expected earnings report. The options I held over the new year weekend paid off and gave me a sense of bias to the long side. So much so that I didn’t anticipate the FOMC announcement to affect my whole tech heavy portfolio so badly. Even though I knew the Fed will soon hike the rates and forward revenue looking stocks like big tech will be affected adversely, I still have a sense that this sell off is a rotation to value names and will eventually stabilize to affect big tech to a more uniform taper rather than a major correction into bear territory. Although, I’m keeping myself open to that possibility and will be more conservative with my portfolio this quarter given the current market conditions.
I made some adjustments to the thematic portfolio by cutting some names to meet a margin call after Wednesday’s drop. I trimmed $BLDE and cut $VLD. I reallocated from $NVDA to $NXPI and closed covered calls on $HIVE. I also initiated another $TSLA 1200 call and regretted it right away. This year, I will be more conservative and use options to decrease risk, rather than increase it as I had done last year with questionable success.
I’ve also created a small basket of blue chip names in the financial, industrial, consumer, and energy sectors. I pulled together 20 stocks and leveled fractional shares of the same worth for each of them. The 20 stocks are the following:
$BAC $BRK.B $GS $MS $JPM $WFC $CBOE $MSCI $NDAQ $SPGI $CAT $DE $HSY $MCD $JNJ $PFE $ CVX $XOM $F $GM
Meanwhile, I am seeing Bitcoin drag down to the major 40k-42k area which bulls have uttered to be a support point for another rally to the upside. I feel excited to buy here but I really don’t have dry powder to that. Instead, I will have to reallocate from some names to others and, to be frank, I would rather hodl and wait for a confirmation to the upside instead of jumping in now and feeling more pain. So, I’ll watch my meme tokens like SAITAMA INU, INUBIS INU, DOGELON, and SHIBA INU for now and will nap through this rout for the time being.