At the moment, the $10,000 portfolio holds nothing other than a cash balance of $17,557. My two most recent trades effectively offset one another. While I hit a home run nailing the Sirius XM (SIRI) short for a profit of $900, I decided to take my lumps on some errant FedEx (FDX) calls:
$10,000 Portfolio Update: Long FedEx And Short Sirius To $20,000?
Sirius, Netflix, RIM: Exploiting Nasdaq 100's Weak Links In The $10,000 Portfolio
At the moment, I feel like just sitting on the cash and waiting things out as I coldly calculate ways to achieve the original goal of doubling this portfolio by the end of the year. I'm a bit cautious right now after experiencing such a nice run.
While still bullish near- and long-term on Apple (AAPL) and Amazon.com (AMZN) and bearish near- and long-term on Netflix (NFLX), Research In Motion (RIMM) and SIRI, I don't want to go to the well too many times on the portfolio's big winners. Plus, too many catalysts exist that could push any of those names in the wrong direction, particularly the bearish plays.
Between earnings reports and the prospect of M&A and/or dead cat bounces and short covering on the bearish names, I think it's time to stay on the sidelines with respect to at least AAPL, AMZN, NFLX, RIMM and SIRI. Or, more aptly, I'd rather not risk the double with trades on any of those stocks for the time being.
That said, I am willing to risk the double on you - the Seeking Alpha reader. Because it would be boring for you to watch me keep $17,557 under my Tempur-Pedic (TPX) pillow, I am going to leave it to the readers to construct the final leg of the $10,000 portfolio's anticipated double.
At day's end, it's still on me. Here's how it will work:
- Leave your trade ideas in the comments' section of the article.
- Be as specific as possible, using entries and exits on both the profit and loss side as well as rationale, time frame, etc. Remember, we have until the end of the year. Longer-term trades are fine.
- Stock, ETF and options trades qualify, nothing else.
- Because there will be a lag time between your post and execution, try to make it something you're confident in mid-term. In other words, no day trades or swing trades with too tight of a window. While I have closed many of my trades quickly, they have all been backed by a longer-term sentiment, right or wrong. It might take me a couple days to a week to execute a trade so it needs to have legs.
- We need about $2,500 to get to a double. Keep that in mind.
- I'll pick anywhere from one to four trade ideas, execute them at the time of my choosing (so, again, consider that) and post them as I have all other updates. This can be an ongoing thing until we hit a double.
- I reserve the right to manage the trade on my own, but, ideally, I would like to give the reader who submitted it some level of control, if not total control.
- Fellow Seeking Alpha contributors are eligible.
- There's no prize, except for the glory, although we could gather in a Santa Monica pub to celebrate, as a group, if this thing doubles.
Once the $10,000 portfolio doubles - assuming it does - I will take the $20,000 and try to aggressively grow it over time with another new twist. Post your trades and/or follow along and stay tuned.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.