This week’s Alpha Trader podcast features hosts Aaron Task and Stephen Alpher speaking with Cody Willard, hedge fund manager and editor of Trading With Cody.
“Please be selective with your trades,” Willard recently wrote, calling the current action a “bubble-blowing, bull market, blow-off top phase.” He takes note of recent massive moves in what are otherwise penny stocks, as well as the SPAC IPO frenzy. Those words don’t come easy to Willard, who has been mostly bullish for about a decade, but now describes himself as a cautious net seller of equities.
Certainly no penny stock, but surely a sign of the times, Tesla (TSLA) was up big again on Monday even as the major averages sharply sold off. Willard has owned the stock for much of its run higher, and still believes in the transformative nature of the company. Marveling that nothing seems to ever shake the shares, Willard continues to hold the stock, but wonders how much more upside there can be from the current $700B market cap.
Turning to what might be some other bubbly action, Willard’s been an owner of Bitcoin (BTC-USD) for many years, but feels it’s gotten ahead of itself. He thinks the most recent big run higher may have come at the expense of investors selling gold (XAUUSD:CUR) to buy the crypto (which has taken on the nickname of “gold 2.0”). A reversal may be in order, says Willard, adding that the SPDR Gold ETF (GLD) is one of his favorite positions right now.
Appearing on Alpha Trader almost exactly one year ago, Willard was excited about the multi-trillion dollar opportunity in space exploration. He remains so, but the pure-play publicly traded vehicles are slim, with Virgin Galactic (SPCE) and Stable Road Acquisition (SRAC) - which is merging with space travel company Momentus - maybe the two most well known. He’s most bullish and owns a stake in still-private SpaceX (SPACE), believing the company might be worth $1T if public. Alas, Willard doesn’t expect Elon Musk to ever make that move, given some of the regulatory headaches he’s dealt with at Tesla.
There’s plenty more, including a discussion of a still-private 3D printing rocket company, why Apple (AAPL) remains an exciting long, and host Aaron Task making a great elevator pitch for getting long the roughed-up dollar (USDOLLAR).
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