BotTrigger Trade Update: $AMZN is now up $40+ in after hours on earnings hovering around the $955 area. Congrats everyone!
In 2017 alone we were in on AMZN @ $797.58 → then out @ $845.00 → then back in @ $874.01. So we've missed about 30 points of upside so far. We're going to be increasing the stringency in which sell calls gets made on Class A Stocks. Let's distinguish something important here. When was it ever a bad time to own AMZN? Since the post financial crisis era, AMZN has only ever corrected -30% on 2 occasions. And we've seen about four -20% (range) corrections. Each time AMZN recovered and later eclipsed the highs.
The point here is this, AMZN is really one to hold indefinitely. Short of needing immediate cash, AMZN, FB, GOOG, NFLX, AAPL, PCLN are all in a class of their own. We will from here on only be selling half positions in AMZN when there are absurd extremes to the upside on a relative scale. Market volatility & shenanigans will occur but those have always been buying opportunities. We know that sell orders bring AMZN down every quarter down to the 21 day moving average at least once per quarter; the 50 day exponential moving average is visited at least 3x per year. We're going to model & table this all out in another post. The point is, these have all been buying opportunities. Right now the portfolio is uncomfortably underweight AMZN at only 5% allocated to this name. In the coming weeks we will be restructuring the portfolio cleaning up losers and prioritizing higher allocations on winners and the inclusions of more Class A Stocks like AMZN, FB, NFLX. GOOG. A more formal announcement for Members will be sent via email.