Rotation into stocks this week?

[joesxm3]

I don't mean to talk about crypto. This is only tangential a little bit.

I had been thinking that the jump in the stock market last Thursday and Friday was probably in part due to short covering and we might see prices drop tomorrow.

However, someone on a crypto forum brought up the idea that most retail and probably a lot of hedge funds or institutions that might have been allocating into crypto are scared and probably would take a break and redirect their crypto money into the stock market.

Do you think we might see a rotation from crypto into stocks?

If so, I might think it would be into the more speculative Ark Invest type stocks or high growth tech stocks since that would appeal more to the speculative taste of the crypto allocators.

 

[NW-Bound]

I am thinking the market will go down tomorrow, just because it has gone up a lot last week. A mini correction if you will.

And some tech stocks will go down more than the market. Just because they have gone up more.

In any case, in a few hours, we will know.

And I will not buy any stock outright. I will write OTM puts on the shares I got assigned last Friday and the Friday before that.

Yes, when stocks go up, I write OTM calls. When they go down, I write OTM puts. Why they go up/down is secondary, and is often unknowable.

 

[Montecfo]

I think the move is generally higher until the Fed speaks again. Then down sharply.

 

[target2019]

Clicks and twits on social media are not investing wisdom. That is like the blind men describing an elephant from a single touch (https://en.wikipedia.org/wiki/Blind_men_and_an_elephant). Observations based on limited experience are very questionable in my opinion.

Social media is interesting fodder, I'll admit.

 

[NW-Bound]

The S&P ended up being down -0.89% today.

I am down -0.38%. That's not bad at all for 50% stock AA, and that's because the calls expiring 11/18 that I wrote last week are dropping.

I have not started to sell OTM puts yet. Maybe tomorrow, or the day after tomorrow.

 

[joesxm3]

I sold some NVTA calls on Friday. Today I did not want to commit the full 100 shares on some of mine, but I sold 10% of my shares on four or five that I would not mind trimming the position on. I immediately put in buy orders 10% lower.

Obviously my operation is a quite bit smaller than yours.

 

[NW-Bound]

Today, the S&P went up 0.87%. I was up 0.8% on a 50% stock AA. What gives?

It turned out that in Q3, Buffett bought Taiwan Semi (TSM), Celanese (CE), and Lousiana-Pacific (LPX), as reported in BRK quarterly report released last night. These stocks went up bigly today as investors followed Warren. And I happen to have all three already. Heh heh heh...

I am afraid my winning streak will end soon. A guy can't be lucky all the time.

 

[Koolau]

I don't mean to talk about crypto. This is only tangential a little bit.

I had been thinking that the jump in the stock market last Thursday and Friday was probably in part due to short covering and we might see prices drop tomorrow.

However, someone on a crypto forum brought up the idea that most retail and probably a lot of hedge funds or institutions that might have been allocating into crypto are scared and probably would take a break and redirect their crypto money into the stock market.

Do you think we might see a rotation from crypto into stocks?

If so, I might think it would be into the more speculative Ark Invest type stocks or high growth tech stocks since that would appeal more to the speculative taste of the crypto allocators.

I wonder what effect the issues with FTX will have on the markets. Just thinking folks might now preferentially buy stocks but I can barely run my own portfolio so YMMV.

 

[matjung]

Do you think we might see a rotation from crypto into stocks?

In my opinion we don't.

There was no rotation from stocks to crypto, or was there?
I consider stocks as an asset class, whereas crypto is a transaction currency in unix machines that attracted by chance gamblers.

I would say, in terms of money, crypto competes with Las Vegas and the betting industry.

 

[Montecfo]

Most crypto-philes seem to be the true believer types who will double down, not rotate into stocks.

I expect more losses for them.

 

[NW-Bound]

I am not sure if cryptophiles have any money left to put into stocks.

Stocks are going up way better than I expected. The Fed can't seem to scare buyers off.

 

[joesxm3]

Maybe rotating from sh*t coins into bitcoin. Plus the amounts are tiny compared to the stock market.

 

[jurgs01]

Maybe rotating from sh*t coins into bitcoin. Plus the amounts are tiny compared to the stock market.

I have most of my crypto money in xUSD, a protocol on the Binance Smart Chain that just accumulates fully backed stablecoins.

I will buy ADA, CRO, ETH and Algo as they continue to drop in price.

I also buy PAXG weekly.

Transfer everything to DeFi. No centralized exchanges.

 

[Koolau]

I have most of my crypto money in xUSD, a protocol on the Binance Smart Chain that just accumulates fully backed stablecoins.

I will buy ADA, CRO, ETH and Algo as they continue to drop in price.

I also buy PAXG weekly.

Transfer everything to DeFi. No centralized exchanges.

I know nothing about any of these, so I'm not a candidate for crypto investment. I recently saw a whole program on crypto on PBS. I've read several articles on it. I still don't get it. I lost a lot of money before by investing in things I don't understand. I don't do that anymore. YMMV

 

[MichaelB]

Sorry, but this discussion has evolved and is now only crypto, which is off topic until further notice.