SELLING $Sonos And Last Of Big Tech

Hey Subscriber, 

Going to make this quick. When we advised you starting in March that we had added tight sell stops to ALL our remaining Game Over Digital Platform stocks ($TSM $APPL $AMZN $MSFT $GOOGL and $AMZN...we meant it!

In our managed accounts that meant ALL those positions were closed in mid-March. 

NOW the leading QQQ players have all technically broken down on HUGE VOLUME...which means another 20%+ down for every stock in the QQQ.

Remember this: ALL the big index $SPY $QQQ are market cap-weighted. That means if $APPL is 6% of the index, and the sponsor gets $1 billion of redemptions, $60 million of APPL stock gets automatically sold/dumped. There IS NO trader who gently tries to sell into the market. 

Who cares? Well, this market cap weighting is a two-way street. It creates a virtuous circle aka positive feedback loop as long as new money is coming into the $SPY and $QQQ--but with $5 billion in redemptions now coming in per week, the REVERSE ratchet effect creates a VICIOUS feedback loop where the highest market cap stocks get automatically sold. 

As you probably noticed, there is an institutional BUYERS STRIKE going on as what worked for 12 years has completely reversed (that is why our Ultra Income and Growth portfolio has appreciated about 100%+ vs. $QQQ now down 24% this year.  

When passive investors started opening April brokerage statements, they started running for the hills. 
 
I can tell from the voices behind the phone calls I have received from friends and family members referred by our managed account clients who see their $millions in the stock market now down 25%-40% while our clients are up 80%+ .

They are scared. They have 529 plans for kids/grandkids for fancy Ivy League colleges down $hundreds of thousands. They have IRAs and ROTH IRA down $400-$800k...you know...REAL MONEY that they don't have decades to recover. 

As I said in the Special Report you received last night, doing nothing here with the reversal of 12 years of 16% QQQ annual performance (while the average annual return in stocks since 1989 is 7%) is NOT an option. I am not your tax accountant. You may be saying "I'm a long term investor--this is just your average bear market" I suggest you re-read our Special Report (it should be on the website later today...here is the link to the email ).

I meant EVERY word of the report title "The TINA To Tech Stocks/Buy The Dip Reflex is OVER!. 

I have seen this movie up close and personal in 1980-1982, 2000-2003 and 2007-2009--and I now how this movie ends--in tears, in fractured retirement savings, and in shellshock. 

You can WAIT for a rip-your-face-off rally like last week's one-day wonder--or just put sell stops 5% under our remaining Mega tech names. 

For our record, our recommended sell stops put us out of the Mega Caps on March 3/25.

$SONOS--Take Profits NOW 

We are selling NOW ahead of their earnings tonight--too afraid of another "Pandemic Sales Demand-Pull Forward" casualty. 

In the All Access Discord Trading Room, we own put options on $SONOS May 13 SONO puts 19.0 Put    UNDER $1.45

Tomorrow we add another HUGE DIVIDEND play with $SBLK upside

NEW SHIPPING PLAY $LPG is the LPG shipper Dorian LPG Ltd. buy under $20

It's gone to variable dividend rates and you have to own it tomorrow to get the $2.50 dividend--FYI it has already paid $1 in January--do that 2022 dividend math (with at least 2 quarterly dividends to go).

This is a NORMAL dividend...some of the $2.50 will come out on the pay date but on the $1 dividend pay date slippage was a few cents. You HAVE to buy the st tomorrow to get the $2.50 ok?

For about 10 reasons $LPG is now my fave shipper ever--but the big reason is they ship the Butane and Propane to China via the recently opened extension to the Panama Canal and are one of the few Liquid PROPANE Gas LPG shippers to China. Butane and Propane are Natural Gas Liquids (NGLs) and they are the primary input to making PLASTICS of all kinds.

LPG shipping day rates are at historic highs...and with the new Panama Canal extension now open, LPG super-sized ships take far fewer days to get to China. 

AT THIS DIVIDEND rate, LPG could easily be a $40 stock with $5 dividend! 

Get Busy! 
Toby