I’m letting Beyond Meat ($BYND) go for the time being. I think the stock moves even higher, but it’s a bit too risky for anything other than a day trade. (January 13, 2020)
BYND
I am just following up on Beyond Meat ( NASDAQ: BYND ) because I started covering it last week and so I just want to circle back to it.
I have taken a lot of profits; in fact, at present I don’t own any. I had stock, I had call options and I was short puts and I closed them all today. I don’t think that the stock is done going up I just think that the stock, listen to me, this is important, at least I think it is, I think the stock is actually kind of beyond that point where the potential for further profits, while it is still there, the potential for further profits is drastically outweighed by the potential for the stock pulling back.
In other words, as it sits here, say at 115.00, I don’t know whether the next top is at 130.15 up or if it is down at 100.00, 15.00 down. Stocks like this don’t do up forever. I remember saying this back here, that I could see this stock running up to $120.00 before earnings. I do think it is still going to do that; I will be honest with you, I didn’t really foresee it happening today or as fast as it is. But when you see a stock that is up like this an experienced trader would probably have been out before now because they have seen stocks reverse quickly and give them losses when the could have taken really good gains. They have seen that enough times to where they go like, no, I am not going to make that mistake here. I don’t want to catch it all but this is a pretty good trade so I will go ahead and book profits.
On the other hand, you will get people, they are kind of like the Bitcoin folks that bought at 20 thousand, they’re actually still holding. It becomes a religion, where you are looking at Beyond Meat ( NASDAQ: BYND ), you’re buying here at 114.34 and you think this pullback from 115.50 is a key buying opportunity. Now, it may very well be, and the stock is up, look where it is trading after hours, the stock continues to trickle higher.
I think that if the stock hits 120.00 you just kind of have to take some profits. This is just too hot for me to handle and that is not to say that I won’t be back into it in the morning if the stock continues to move higher but it would be for a day trade. Also, keep something in mind, I hate to be a conspiracy theorist but I have been trading for over 2 decades and I have seen stocks like this get knocked down by analysts who will downgrade a stock and then magically they issue a buy recommendation like a day or two days or three days later after their big clients have had an opportunity to buy the stock on a pullback.
Do I think Wall Street is rigged? I don’t know, only if you find scumbags obnoxious. If you don’t then no, it’s not rigged it’s a level playing field. All I am saying is, when a stock is moving like this and it’s got the shorts on the run and it’s a new stock where probably institutions are looking to buy this, this is where the buyings come from. Your aunt Sally isn’t buying 29 million shares of stock here. This is institutions scrambling against each other to buy this stock. They are not going to continue to buy it up to 200.00 without doing something to try to knock this thing down.
So don’t ask for too much but you definitely want to keep track of it because it would be a bummer to sell the thing at 114.00 and then look at it when it is at 200.00 and wonder why you got out of everything. So just trade fractionally and don’t do anything stupid.
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