December 2020 Report - Jack & Winnie the Pooh just screwed me over

Well this is it, the last month of 2020.

Market overall has been relatively uneventful, with the exception of the SHARP drop in Alibaba, negatively affecting my portfolio, which I blame on Jack Ma who criticise China Govt policy few months back, which cause the suspension of ANT IPO few months back, and then recently China Govt launch some anti-monopoly campaign to prevent Big Players like Tencent, Alibaba from becoming to big and having unfair advantage.

That said, Alibaba is now at a quite attractive price hovering around $230 as of 31 December 2020. With Calculated Intrinsic Value of around 390 USD. Lowest dip was $212 and I did load up more around $220, But sadly, I am running out of bullets to top up, I hope this travel restriction blows over soon so i could travel back to Jakarta to sort out my Bank accounts.

Anyway, I would say, yes BABA would still be a good buy (or if you have the capital would recommend buying 9988 on HK market). But I wouldn't go All in Now because there is no telling how and when Alibaba will recover, it might still go down to an even better price. So Buy in stages, identify good level of supports to buy. Would recommend you to check out this video Alibaba Crash! buy or Sell? and this one BABA is a buy , Then you decide whether you want to buy more of Alibaba

Unfortunately my current positions is quite heavy on BABA, involving some Calendar spread options which drags down my performance this month. So how did I do this month?

December 2020 Performance

I started Strongly this Month, beating the index from the start and then proceed to be on track to trash the S&P500 index again. Unfortunately the whole saga of Jack vs Winnie the Pooh took turn for the worse and smack down my gain, ended up closing at +4.84% VS 3.73% . 

I guess I should be happy, not too shabby, but let's take a closer look.

Value Stocks: +3.63% Vs +3.73%

This month my value stocks are actually the worst performer. Reason being? Jack vs Winnie, and also because I am still heavily invested in Covid stocks like FB, MSFT, Googl, Amzn, which has been underperforming and just consolidating within a price range, while other value stocks, Dow Jones stock has started going up with the sector rotation as investors began to be more optimistic of economic recovery with the arrival of the Vaccine.

Sector Rotation

Swing Trade: +7.14% Vs +3.73%

Finally I managed to break my losing streak, and start to have winning trades again. It's too early to conclude but the fact that I took a step back be more cautious and spend more time to analyse potential trades before entering. I admit I have been a bit lazy past few months as I was demoralised by my 24 trades losing streak, and focus more on my Value and options play. 

Options: +9.64% Vs +3.73%

Options Play continues to be the best performer, but again, thanks to Jack vs Winnie, there was sharp drop as my Baba Bull put Spread got hit with Max loss of -4 Risk:Reward, and then there was Zoom that started dropping without any catalyst, I had to cut loss at -1 RR. FVRR and LULU are also in danger of hitting my strike price. So despite being my best performer for December, I am not confident going into January. We'll see if I can get consistent gain with my options play in the coming months

December 2020 - YTD Performance

So wrapping up the year 2020, let me present you the YTD performance

I FAILED to beat The index by 1.7%... Correction, 2.6% i used the wrong chart earlier. I did manage to beat it briefly, before the Jack vs Winnie saga dragged me below the index. Now you see why I am so bitter over the whole Jack Ma vs Chinese Govt saga. Buuut hey, gain is gain. I am still quite thankful of my performance.

I will dissect more of my 2020 performance in my Q4 Report which will wrap up 2020, which will also includes comparison with all the different strategies mentioned Here. 

Update: Q4 report is up!

Remember Ferry is not a licenced financial advisor so do you your own due diligence! Provided data are purely based on historical records and may not guarantee future results. Follow my methods at your own Risk!