Schwab $25K Challenge (Day 001) – First Trading Days

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January 6, 2021

Video Summary

Welcome to the first trading day of the year. I’m trying to double my birthday brokerage account from $25,000 to $50,000 by the end of the year. Since the stock market is down, I’m excited to swing trade. On the first day of the year, the S&P was down 1.48%. I reviewed my brokerage account and checked for potential opportunities to swing trade. I looked at the companies that had a significant decline and found a few that I was interested in.

One of the companies I considered was Boeing, which has been heavily impacted by the pandemic. The stock chart shows a golden cross event, which indicates that investors are becoming more comfortable investing in the company. However, I was unimpressed by the company’s fundamentals, including its price-to-earnings ratio, price-to-sales ratio, and price-to-book ratio. I also checked Finviz, a website that provides fundamental analysis, and found that the company’s forward PE ratio was astronomical, indicating that it’s unlikely to recover soon.

I also looked at Lamb Weston, a potato manufacturer, which has a golden cross event and a decent fundamental analysis. The company’s price-to-earnings ratio is 32, and its forward PE ratio is 24. I’m interested in this company’s potential for growth.

Another company I considered was Netflix, which is one of the FANG stocks. The company’s stock price is consolidating around $550, a resistance line, and may be a good opportunity to buy. I also looked at FedEx, which has an upward trend, but there are concerns about the company’s delivery reliability.

As the market opened, I was excited to find some opportunities to swing trade. Instead, the market rallied, and I ended up going for long-term plays. I purchased four stocks – AbbVie, Xerox, AT&T, and Huntington Ingalls Industries – which I think have potential for growth over the next couple of weeks. I’m looking for them to trend up 5-10% and are prepared to sell if they don’t meet my expectations. I still have $18,500 in cash, waiting for more significant market volatility.