Here’s how I’m taking a ride on Peloton ($PTON) (September 17, 2020)
I want to look at Peloton ( NASDAQ: PTON ) today. This is a stock, I mentioned it in our Strategy Session today, I just put this on the Growth Stock List today. I was on Fox Business today, I was kind of chuckling about this, saying how I didn’t really understand that people wouldn’t mind getting sore butts on this.
I was initially wrong about this stock. I was actually right about it if you want to say that because I said, “Don’t buy this stock, this is a fad. You are going to be able to buy the bikes on eBay,” etcetera, etcetera. I just was totally and completely wrong on this. The stock, of course, fell down and so I’m feeling like a genius, though, I wasn’t really looking at the stock. To be perfectly honest with you, I didn’t really care about it; then I lost track of it. And then the stock starts breaking up and I had still lost track of it.
This was a perfect IPO strategy for us; it was a perfect IPO trade. The stock goes up to an enthusiasm high. Mark that spot, draw a line; forget about the stock. And then if it ever breaks out above that line, that’s your entry point. This was the entry point here; making the, would of, could of, should of trade. If I had seen it, that would have been the textbook trade to make. and then at one point, you would be up 150 percent. A nice trade if you made it, I, however, did not, so my bad.
At some point, you have to say, and it’s not about capitulation, it is just about saying, “You know what? I was wrong about this, so is there still more upside? Is there still more to be made here?” I think there is, and I saw this little pullback to the 20. This looks like a petty good entry, better than buying at a high. At least I got a pullback here, to where I am buying the stock here. I can start with a 15 percent stop or something; it just has to stay above the 50-day moving average. As long as it stays above the 50-day moving average this is a stock that you have got to hold.
If you look at a stock like Zoom ( NASDAQ: ZM ); if the stock stayed above the 50-day moving average you were long this stock for a long time, sold some here and then might have even bought it back here, you are good.
Peloton ( NASDAQ: PTON ), I am not saying it’s Zoom ( NASDAQ: ZM ), though, if you work out hard enough on Peloton ( NASDAQ: PTON ) you will be able to go zoom if you ever get out there on a real bike. This is a stock that is just behaving really, really well. So I would be buying this stock here and just hang onto it. It’s not really a short-term trade; it’s a position here.