9/12/2021 Indexes down 1-2% this week. Didn’t buy any INTC yet, bought ACAD at 16.69 (2% of total account value).

Hi everyone, welcome back. Indexes dropped a little this week. Let’s look at the SPY (S&P500 index).

SPY daily chart below. The pattern has been a bounce from near the 50 day moving average (blue line below). Will this pattern work again this time?

I bought a full sized position in ACAD at 16.69 last week in my Roth IRA. Risk reward seems like a 3:1, ACAD could triple to near 50, or go to 0. I bought because of the price and because Baker Bros still own a huge stake in it.

ACAD daily chart below. I plan to hold for up to 5 years, but it could be near 50 within a couple years.

I didn’t buy any INTC for a long term hold, because I didn’t like my original plan after thinking about it more. I will likely still buy some INTC in the future, especially if it drops from current prices to the 40-45 zone.

INTC weekly chart below. I like the dividend yield and the cash flows of the company. It’s trading at a reasonable 12 P/E ratio, so when I buy it, I plan to sell it when it gets near a 25 – 30 P/E ratio.

I hope you had a nice weekend, and I’ll see you next week.

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