Transcript
Hello, everybody, welcome to Thursday, the S&P 500 was down just a little bit more than .4%. But again, for the third day in a row, we’ve seen a sell off in the technology arena, and the Clean Energy arena, Genomics, all of these things that have been doing so well, for so long. And again, this was one of the reasons I wanted to have stop losses put into place, we had several of the stop losses trigger today, which I’m pretty happy with, to be honest. And let me show you an example of kind of, you know, what’s happening and why it might be happening. And share my screen here real quickly. I mean, one of the problems that does happen is that a lot of times, you know, there’s a news that’s out there, so that situation in Texas, or, or what have you. And really, it comes down to kind of price movement and things that are, you know, as to match the news attaches itself to that price movement, for example, this is the iCLN, you know, clean energy piece, we’ve had this for quite some time. And you know, if you look at this back in, you know, March here, it hit a low of $8, and then hit a high of $34.
That’s an incredible rate of return. And so really, what’s happening here is that this rubber band has just been stretched, you know, so so far. And you can see it built a base here and then took off, and it built a base here and took off this built a base and took off. And so but one of the problems is having right now is that it kind of broke through this base. And so you know, our our stop losses right here. And we basically got out of this position, because of that stop loss in our IRAs. Now, we’re not moving out of this at this point inside of our non IRAs, because we have over a 70% average, you know, gain in this position. So I don’t want to generate that much taxes, and especially on a short term capital gain basis. But one of the problems that happens when it breaks below these bases, well, let me talk about the positive.
First of all, these bases are really, really positive, you can see how many of them they had, because what it does is it creates this whole support level. And if we get above that, then you’ve got this to fall back on. But just the opposite is true when it falls through the base on the bottom side here. Because you can see there isn’t a lot of volume below this. And so it can kind of fall for a bit. And then it has to kind of crawl back through, you know, all of this resistance to get back to where it is. And so I was concerned about this, I talked about this in January, you know, a lot of this movement that happened right here, I was right after the GA win, and you know, really, you know, the market just got so hot, and we’re still doing well, I’m still really happy with everything. But there’s a very broad sell off, not much work today bonds, you know, those types of things, it’s just one of those days, really, it’s been kind of one of those weeks, and so we’ll see what happens, I am going to make some adjustments to the portfolios, and kind of, you know, reduce some of these pieces that are at these highs, because it seems like there’s a selling, you know, mode right now, that’s kind of happening. And that’s okay. And so I have some ideas, and doing some research on, you know, where the money’s going.
So we can still be in front of that. But really, you know, a lot of the pieces that we have have done just so well. And that’s great. And I don’t want to follow them all the way back down. Again, if we have taxes, you know, we’ll let them go for a bit, you know, we don’t want to let it all disappear. But you know, got to give it a little bit more room there. If on the other hand, we have a taxable account, and we bought something you know, not too long ago, there’s actually at a small loss, I’d like to take that because that allows us to capture, you know, losses, and then we can use those against gains to make other adjustments to the portfolio, you know, as the year goes on, I generally would rather have profits on every single thing.
But if there is one thing you can do to take advantage of some short term losses is to kind of capture those, and then use that money, you know, for future changes. So not a great day altogether. But I think the strategies there, I talked to yesterday about having a plan, stick to that plan, you know, don’t panic, that the stop losses are working. I you know, really, really happy that we have those in place. And so that seems to be, you know, holding up things pretty well. So let’s see what happens tomorrow. You know, I think we’re kind of just in this mode right now where, you know, the market is kind of settling in and we’ll see you know how that plays out. But look forward to talking to you tomorrow. Thank you very much.