At Blue Line Trading, our message is always about the system. It works. Follow it, make money. But every so often, we come across a stock that we can't resist. While they don't always play well in our trend following system, they can be a fun, speculative trade.
Why do we love these speculative trades? Some stocks represent an idea, technology, or development that could benefit the world. Others feel like playing the lottery with better odds. Whatever the motivation, when we find a speculative stock we like, we share it. Look for these speculative trades under our "Special Situations" portfolio.
Case In Point: Bitcoin Investment Trust (OTCQX:GBTC)
Bitcoin Investment Trust (OTCQX:GBTC) is an ETF that buys and holds Bitcoin. The stock was added to our Special Situations portfolio in June of 2016 at $123 and it is now trading at $755. We are using our Blue Line Trading trend algorithm as fail-safe protection, exiting the shares whenever the uptrend shows sign of losing momentum. This offers a degree of price protection, or "insurance," against any serious price deterioration, while at the same time allowing us to participate in its very robust rally.
Going into what is seasonally a very volatile September-December time window, we expect to soon be adding several new speculative trade ideas to our Special Situations portfolio.
Disclosure: I am/we are long GBTC.