Ask Sean

This is the place that you can ask Sean about things like: former portfolio positions, questions about this site, how to become a subscriber, questions about investing, etc.

This is the place that you can ask Sean about things like: former portfolio positions, questions about this site, how to become a subscriber, questions about investing, etc.

Comments (102)
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Prosper
Prosper

Sean, when I do a search for a pick (DO for instance, to see if I should average down) it shows the comments to be locked. Why, and how do I access them? Thanks

Sshetty
Sshetty

hi Sean ..there is Canadian stock that I purchased before I was a UWR subscriber that is Crescent Point Energy Corp CPG-T....I brought it at a higher price point ..can you please advise whether I should average down on this ...the price is now $ 6per unit. thank you very much

Sshetty
Sshetty

thank you Sean ...my original price point was at $22 and now the price has fallen to $ 6 , thats why I thought I will average down to bring to a price point of $8 and see if I can make a profit of around 20%...what do you think

JOSEPH F Ruda Jr
JOSEPH F Ruda Jr

When does the newsletter come out?

Joseph Goh
Joseph Goh

Hi Sean, I've been looking at NKE, it's looks like it's at it's ATH and PE is at 64.4 and from a TA perspective, it looks like it's forming a double top. Seems like it might be heading for a correction in the near future. Your thoughts? However, I do think NKE is a fundamentally sound stock but it's wayyyyyy too expensive now.

5 replies

Sean Hyman
Sean Hyman

Editor

It is stretched far away from its 200-week moving average and is overvalued fundamentally. The potential for downside risks are huge. It's not a double top, however because the two tops aren't near enough to being equal. Nonetheless, still there's a lot of downside risk potential for buyers. So buying puts or even better selling a vertical call spread (aka credit spread) is an even higher probability trade if done right.

When doing puts or bear call credit spreads...since we've already determined on the weekly chart that there's huge downside risks "overall", then we'd want to hone an entry point. With the price stretched well above its 200-day moving average and when it's at its top Bollinger Band is a high probability entry point. If it's even out of the top of the top Bollinger Band, to the upside, even a bit better. Also, notice, at the same time there's a declining RSI (showing potential weakness as well).

Sean Hyman
Sean Hyman

Editor

Click on the charts to enlarge them.

Sean Hyman
Sean Hyman

Editor

So...that's not a recommendation but just some observations about it.

Joseph Goh
Joseph Goh

Yeah, I definitely agree with your observations of cause doing my own due diligence.

Sean Hyman
Sean Hyman

Editor

Glad that was all helpful.