In my past few posts I talked about knowing the high level flows while also understanding the lower level, tactical market conditions. That’s why I bought into Google and Amazon when they dropped a few months ago.
As you know, I am pretty involved with derivatives and my option calls are up 57% (Amazon) and 46% (Google) through the last 2 months. And I expect them to run into the Quarter end as I actually expect decent earnings growth for both.
In some cases you see the stocks drop going into earnings. But I expect with Amazon’s potential to split and Google’s likelihood for another good quarter, I will likely hold until the Earnings are announced.
Further, depending on Amazon’s story, I may just hold it until it crosses $4000 (and more depending on a split announcement).
But, this cam about because I trusted things would be relatively even on the inflation/Fed side (from a high level) and I also understand the quarterly cycle of the stocks.
Of course, if the stocks do dive in the next few weeks, I will have to decide whether to double down or just hold. I think I am safe for two weeks though (with some potential upside).