Last night, I sold 6 shares of Amazon at $3,535 for an overall gain of 77%. Half of that belonged to my wife to lock in a nice 9% gain for her. The other half I sold to reduce my margin, and I still have 31 shares left.

I was lucky enough to sell when it was about 1.84% up for the day, cause it actually closed in the red. Absolutely ridiculous for smashing estimates and tripling profit.

The stock market has been unforgiving lately, with stocks that announce blowout earnings being flat or even going down (AMD, Apple, Microsoft off the top of my head). A lot of ways to interpret this. The market could be thinking that this is the peak of earnings and that going forward, big tech won’t be earning as much. That’s fair. Or that the market had already priced in such numbers, and that if they didn’t announce blowout earnings, the stock would go way down. That’s possible too.

Either way, it doesn’t seem like a good signal to me. Feels like the market is looking for any reason to sell. I would be a bit more cautious for now, and would wait for the next big opportunity before deploying additional funds into the market. I’m sitting comfortably at about $210,000 margin, and I can deploy a good chunk when the next correction or crash happens. Looking to raise even more by trimming my Nvidia stake over the next few weeks. Given how strong 2020’s performance was and all the new taxes announced by the Biden administration, my expectations are growing for 2021 to be lacklustre year for the stock market. While I’m still fully invested, my mood is definitely towards reducing leverage and taking some profits off the table.

Much of those profits are being redirected into entertainment. I spent over $10,000 on various toys last month in anticipation of enjoying myself during my term break. It’s a bit out of character, but we haven’t travelled for about 1.5 years. Life is short and we should enjoy ourselves while we can.

Looking forward to posting on what I’ve spent!

2 thoughts on “[Premium] Shedding one of my top holdings

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