Markets still falling like whoa

[BehoId, The Underminer! 11,668]

do they ever split things like SPY?  feels like $500 is too high of a barrier for entry for folks.

[52-80 19,076]

17 hours ago, BehoId, The Underminer! said:

do they ever split things like SPY?  feels like $500 is too high of a barrier for entry for folks.

if we all sell out of the index at once it achieves the same objective

[Wally Fairway 5,517]

22 hours ago, BehoId, The Underminer! said:

do they ever split things like SPY?  feels like $500 is too high of a barrier for entry for folks.

not really - if you are buying it through a 401k, they you buy fractional shares every time it is funded, and I think you can just buy it in $ amounts I think most brokers will fill orders for $$"s on ETF's and mutual funds. To be honest I have no idea if some brokerages charge higher fees for fractional share transactions, I do know that Schwab charges next to nothing for stocks, mutual funds, ETF's and usually just pennies for options, there are some small fees for non-US holdings. 
I think my son is buying $50 week (or every other week) of SPY, and paying no fees at Schwab.

Then again maybe this is special pricing for their best customers - after all I am a multi-thousandaire, and a nominally active trader.

Edited February 20 by Wally Fairway

[Nice Guy Eddie 13,406]

13 minutes ago, Wally Fairway said:

I think my son is buying $50 week (or every other week) of SPY, and paying no fees at Schwab.

Great strategy to buy and forget.

[bernorange 8,348]

NVDA earnings tomorrow.  S&P500 will rise or fall on the news. 

[Incredulity 11,541]

55 minutes ago, bernorange said:

NVDA earnings tomorrow.  S&P500 will rise or fall on the news. 

Based on today’s action they aren’t going to be good.  Although in the context of NVDA price movement over the last year only perfection would be good enough.

[Wally Fairway 5,517]

On 2/20/2024 at 9:42 AM, bernorange said:

NVDA earnings tomorrow.  S&P500 will rise or fall on the news. 

 

23 hours ago, Incredulity said:

Based on today’s action they aren’t going to be good.  Although in the context of NVDA price movement over the last year only perfection would be good enough.

Buy the hype, sell the news.

"A tale as old as time, True as it can be
 Ever just the same, Ever a surprise
 Ever as before, Ever just as sure
 As the sun will rise"

 - sound investment advice from Beauty and the Beast

[Nice Guy Eddie 13,406]

On 2/20/2024 at 8:42 AM, bernorange said:

NVDA earnings tomorrow.  S&P500 will rise or fall on the news. 

 

[bluto 4,880]

Need help… I own shares of company A, they’re down 10%. Company B bought company A, all stock deal and let’s just call it 1:1 and share prices are even. 
 

can I sell off my company A shares and immediately buy company B today months before the deal closes to capture the loss or will wash/sale apply?

[Wally Fairway 5,517]

9 minutes ago, bluto said:

Need help… I own shares of company A, they’re down 10%. Company B bought company A, all stock deal and let’s just call it 1:1 and share prices are even. 
 

can I sell off my company A shares and immediately buy company B today months before the deal closes to capture the loss or will wash/sale apply?

Sell company A, harvest that tax loss.
Buy calls on company B, at about the same price is now, but for 6 months from now. Exercise is beyond wash/sale limit. Stock goes up = Profit. 
Stock doesn't go up - {insert "one of us" gif}

Actual answer/guess is that you can sell A and buy B and not have a wash transaction as they are different stocks and there are risks and rewards that are different for each (disclaimer - I selpt at a Holiday Inn Express last night)

Edited February 21 by Wally Fairway

[Blotto 23,424]

7 minutes ago, bluto said:

Need help… I own shares of company A, they’re down 10%. Company B bought company A, all stock deal and let’s just call it 1:1 and share prices are even. 
 

can I sell off my company A shares and immediately buy company B today months before the deal closes to capture the loss or will wash/sale apply?

1.) Wash sale rules typically cover "substantial identical securities"  which is a pretty nebulous term. As the  proposed acquisition hasnt even closed yet, I dont see how you could consider the two stocks identical securities

2.) If I actually needed the answer to this, I probably wouldnt listen to me. 

[Storm the Field 5,271]

On 2/20/2024 at 8:42 AM, bernorange said:

NVDA earnings tomorrow.  S&P500 will rise or fall on the news. 

Blowout.

Quote

 

Nvidia Corp. crushed expectations with its latest results and outlook Wednesday, helping to send its shares soaring as management talked up a bright future fueled in part by artificial-intelligence demand.

The chip giant has benefited from frenzied spending on AI hardware, and that was on display again Wednesday as the company reported fiscal fourth-quarter results. Revenue came in at $22.1 billion, up from $6.05 billion a year before, while analysts had been modeling $20.4 billion.

 

 265% increase in revenue YOY. Stock up 8% after hours to nearly $730.

[4th and 5 4,914]

Fidelity app gonna look good in the morning

[Nice Guy Eddie 13,406]

I presumed NVDA numbers would be good but not good enough. Financial Media would spin as bad sign for 2024 and today would see a huge opening drop.

glad I didn’t act on my stupid opinion. Today is shaping up to be one of those days that you didn’t want to be out of the market.

[4th and 5 4,914]

Good morning!

[Wally Fairway 5,517]

6 minutes ago, 4th and 5 said:

Good morning!

Whoa!

[BehoId, The Underminer! 11,668]

3 hours ago, Nice Guy Eddie said:

Today is shaping up to be one of those days that you didn’t want to be out of the market.

the generic 'you.'  for the specific 'you,' i'm a goddammed magician.  i have red arrows on 9 of my 11 holdings today.  

[bernorange 8,348]

 

[Wally Fairway 5,517]

I am surprised at bernoranges post - I thought he would have posted what I am about to 

The market excitement will last for a while, but when the new jobs report, inflation number and the continued stock market surge is all accounted for the Fed may well unpause their rate increases or at least take any rate decreases of the table for 2024 and likely indicate that none in 2025. 
Then we will see if the Fed has any real impact on the market (it will drop when they announce, but how long will that last), or are they now just having to step back and watch the economy (I don't think they will give up the battle)

[CooterBrown 17,901]

I like money.

 

[Nice Guy Eddie 13,406]

22 minutes ago, Wally Fairway said:

I am surprised at bernoranges post - I thought he would have posted what I am about to 

The market excitement will last for a while, but when the new jobs report, inflation number and the continued stock market surge is all accounted for the Fed may well unpause their rate increases or at least take any rate decreases of the table for 2024 and likely indicate that none in 2025. 
Then we will see if the Fed has any real impact on the market (it will drop when they announce, but how long will that last), or are they now just having to step back and watch the economy (I don't think they will give up the battle)

If inflation isn't dropping then it's the correct move for the Fed to do nothing. No reason for them to pour gas on a fire.

If the Fed announced that rate drops would be further delayed, I'm sure the market would react negatively but I also believe that is already partially baked into the market now. We're effectively at all time highs for several indexes and investors know the Fed may not lower rates.

[Da Fino 2,729]

[52-80 19,076]

Shorting spx down below 5000 from a cost basis of 5050 pray for me my dudes

[Guest]

Damn. This run since October is one for the ages.

[Blotto 23,424]

 SMCI is cracking me upright about now. 

Q2 Rev up about 3X vs two years ago

 

Q2 Net income up about 4X vs two years ago

 

Market cap up about 27X vs two years ago

 

a 75 PE for a server manufacturer that will always be somewhat price constrained by the competition seems problematic to grow into, but I aint shorting it. Options premiums nuts as well. 

Edited February 22 by Blotto

[Storm the Field 5,271]

Jensen Huang, CEO of NVDA, has risen about 5 spots on the Bloomberg Top 100 List in the past 24 hours. Net worth has gone up nearly $10B since he got out of bed this morning.

[Your Mom 4,791]

35 minutes ago, Storm the Field said:

Jensen Huang, CEO of NVDA, has risen about 5 spots on the Bloomberg Top 100 List in the past 24 hours. Net worth has gone up nearly $10B since he got out of bed this morning.

My huang also rose this morning when  NVDA and SMCI started climbing back up.  

[CooterBrown 17,901]

47 minutes ago, Storm the Field said:

Jensen Huang, CEO of NVDA, has risen about 5 spots on the Bloomberg Top 100 List in the past 24 hours. Net worth has gone up nearly $10B since he got out of bed this morning.

If I was on the board, hookers and blow would be on me tonight.

 

[bernorange 8,348]

2 hours ago, Wally Fairway said:

I am surprised at bernoranges post ...

which post?

Btw, inflation and Fed rate talk happening in this thread:

https://www.surlyhorns.com/board/topic/19611-2021-is-inflation-finally-back-in-the-conversation/?do=findComment&comment=5974075

 

[Wally Fairway 5,517]

2 hours ago, 52-80 said:

Shorting spx down below 5000 from a cost basis of 5050 pray for me my dudes

Dude - are you trying to replace me.
Good luck, I am enjoying my BRK.B calls, someone remind me that to make money you have to sell when you stop holding things that are actually above the cost.
 

[Sam Lin 3,540]

Yeah but if you sell above you need to pay taxes. Better never to sell high, minimize taxes.

[52-80 19,076]

45 minutes ago, Wally Fairway said:

Dude - are you trying to replace me.
Good luck, I am enjoying my BRK.B calls, someone remind me that to make money you have to sell when you stop holding things that are actually above the cost.
 

Today im the bug tomorrow ill be the windshield. 
 

maybe. 

[Incredulity 11,541]

10 hours ago, Nice Guy Eddie said:

glad I didn’t act on my stupid opinion.

kinda site motto worthy?

[4th and 5 4,914]

10 hours ago, bernorange said:

 

VOO baby. 

[Anastasis 23,390]

9 hours ago, Sam Lin said:

Yeah but if you sell above you need to pay taxes. Better never to sell high, minimize taxes.

Transfer the big winners to charity. Take the full value deduction. Do good, minimize taxes. Everyone wins.  

[Wally Fairway 5,517]

7 hours ago, Anastasis said:

Transfer the big winners to charity. Take the full value deduction. Do good, minimize taxes. Everyone wins.  

Invest in big winners in your Roth account.

[Trey3216 15,325]

7 hours ago, Anastasis said:

Transfer the big winners to charity. Take the full value deduction. Do good, minimize taxes. Everyone wins.  

I'm all about stacking those loss carry forwards.  Can never claim a gain on the tax rolls as long as you stack those losses deep.  

[Incredulity 11,541]

6 minutes ago, Trey3216 said:

Can never claim a gain on the tax rolls as long as you stack those losses deep

Have you been monitoring my emails with my CPA?

[52-80 19,076]

Imagine being AMD CEO Lisa Su at her family gathering.

”Lisa, why you no 2 trillion dollar cap like your cousin Jensen ?!?!?”

[52-80 19,076]

Its friday so decided to get cute and put on a smol pairs trade, 4:1 long amd / short nvda 

[Wally Fairway 5,517]

15 minutes ago, 52-80 said:

Its friday so decided to get cute and put on a smol pairs trade, 4:1 long amd / short nvda 

thanks for the update - but this belongs in the stonk thread, or maybe gambol

[Captainant 27,403]

16 hours ago, FartingMonk said:

[commented deleted]

nvm

Edited February 24 by Captainant

[Wally Fairway 5,517]

Gotta love Uncle Warren saying that, at this point, BRK is basically to big to beat the market by any significant amount. And that it will be difficult to make acquisitions or investments that are large enough to contribute to BRK performance.

And he does this as BRK.b is up 17% YTD, while the S&P 500 is up about 7%; one year returns are 37.2 vs 28.2; NASDAW is up 6.6% and 40.7 (but BRK is really and industrial not a tech stock)

I am waiting to see if the earnings report, or Warrens comments cool the trend of the stock performance. 
Disclosure - I am holding June 24 and January 25 expiry $400 calls that are up over 4x and almost 2x since purchase (mid November)

[Wally Fairway 5,517]

BRK.b acting like a stonk this morning - jumping in the pre-market over 5% ($20) it opened up about $12 and is not trading at a small loss for the day. 
And all on "news" that broke on Saturday, when earnings was released. Who know an almost $1 trillion insurance/industrial/stock investment conglomerate would swing like this on the ramblings of a 93 year old icon and a couple of analysts reports. 

Stocks (and markets) can become stonks - for really undetermined reasons.
America - what a country! 

[Nice Guy Eddie 13,406]

19 hours ago, Wally Fairway said:

Gotta love Uncle Warren saying that, at this point, BRK is basically to big to beat the market by any significant amount. And that it will be difficult to make acquisitions or investments that are large enough to contribute to BRK performance.

And he does this as BRK.b is up 17% YTD, while the S&P 500 is up about 7%; one year returns are 37.2 vs 28.2; NASDAW is up 6.6% and 40.7 (but BRK is really and industrial not a tech stock)

I am waiting to see if the earnings report, or Warrens comments cool the trend of the stock performance. 
Disclosure - I am holding June 24 and January 25 expiry $400 calls that are up over 4x and almost 2x since purchase (mid November)

Inflation can be a good thing for corporations.

[Wally Fairway 5,517]

BRK.B market action today

 

premarket 

 

Me at the close of market

 

[Storm the Field 5,271]

A happier story involving BRK today. 

Her late husband left her over a billion in Berkshire stock. She donated it all. 

[Wally Fairway 5,517]

Just now, Storm the Field said:

A happier story involving BRK today. 

Her late husband left her over a billion in Berkshire stock. She donated it all. 

Kinda makes me wonder how many BRK billionaires there are

[Incredulity 11,541]

"Albert Einstein College of Medicine"

[FartingMonk 3,606]

16 hours ago, Wally Fairway said:

Kinda makes me wonder how many BRK billionaires there are

Since moving to Omaha, I have met quite a few BRK millionaires.  A lot of people rode the wave with him