🗞️The Wrap: Short of It

We chat to a millionaire, hear about the forgotten few losing billions and face off against another brain-bending Trader Teaser. Plus, a win for longevity as the youngest member of our team, Gab, collabs on The Wrap. Make sense of it all below.

5 stocks making 52 week highs

  • Penn National Gaming (PENN) +22.6% in the last week
  • Evoqua Water Technologies (AQUA) +21.9%
  • Enphase (ENPH) +14.5% 
  • Datadog (DDOG) +12.9%
  • Tal Education (TAL) +12.2%

Eat My Shorts

Not everyone is excited by Tesla’s meteoric run. And I’m not just talking about those who sold early (or me who never bought). In 2020 alone, Tesla short sellers are down over US$10b dollars. As the most shorted stock in the states, 11-figure losses were inevitable should a run like this have occurred.

Not all short sellers are betting against the company. Short selling is sometimes used as a hedge against option and convertible bond exposure.

By the time you read this, Tesla could motor past US$1000 or cop an inevitable pull back.

Age Old Wisdom & Wise

We can’t pretend we haven’t heard that all good things take time. A wise old truth.

iIn a world where activist shareholders enforce an overbearing influence, corporate boards are evidently under a burning pressure – one that’s hotter than ever before. Though, HBR’s list of greatest performing CEOs makes it quite apparent that it’s worth waiting out the weather, as it reflects a group of CEOs that have held their jobs for an average of 15 years. A tenure double that of the average S&P 500 CEO!

Interestingly, the average age at hire for blue-chip CEOs has jumped from 46 in 2005 to 68 in 2019, while Forbes highlights the value of older CEO’s nuanced judgement and management skills – often unmatched by those up and coming.

In a world that worships all things new, it’s refreshing to be reminded of the truth in age old wisdom and the wisdom that comes with age.

wise

Top 5 Gainers

  • Insmed Incorporated (ISNM) +59.2% in the last week
  • Tesla (TSLA) +54.0%
  • Navistar Intl (NAV) +45.6%
  • Adient (ADNT) +41.6%
  • Puma BioTech (PBYI) +26.3%

Top 5 Fallers

  • Micro Focus Intl (MFPG) -29.7% in the last week
  • Talos Energy (TALO) -23.0%
  • Skyline Champion (SKY) -21.8%
  • Antero Midstream (AM) -18.3%
  • ON SemiConductor  (ON) -18.0%

Who better to read trading stories from than a former full-time trader. While Bill prefers to trade options, he has some stocks he’s holding on Stake. With a 7-figure portfolio (yes, millions), it’s a piece worth reading. Read it here.

What We’re Trying | Quantopian

As much as I wish I was, I’m no coder. While I want to get into it, I don’t care much for Hello World as an intro…I do care for stocks. Quantopian is a platform allowing traders to create and backtest strategies. Best of all, it comes with relevant and free lessons. Definitely a more enjoyable coding journey.

Starting with an intro to numpy and eventually progressing to topics like “autocorrelation and how to model it to avoid tail risk”, with some time you can go from zero to hero.

Become an expert and code up an alpha generating strategy? You can even have your idea funded.

Definitely a site I’ll be spending time on over the next few months. Check it out here.

Trader Teaser

Given 8 letters, ABCDEFGH, how many ways can you arrange them such that each letter is not in its original spot?

 

You know the drill. First 3 correct replies win a 50% rebate on FX fees for their next AUD to USD transfer.

Best Sell | Tesla (TSLA)

No surprises here. Someone had to have done it. You’ve heard it all before, well done to this trader up almost 250%. I’m not jealous, I promise. 

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