9 Minute Read

Tackle Today: Thought of the day: Hibernate

September 26, 2019

By | No Comments

Tackle Today: Thought of the day: Hibernate (Hibernation Bay aboard the spaceship Avalon - Passengers (2016))
Hibernation bay aboard the spaceship Avalon – Passengers (2016)

« The big money is in the waiting. »

Autumn is here and Winter is coming. 2020 United States presidential election too. Moreover, there is this seasonality sell-off component by the end of September that always tests our convictions as traders.

Say you are a full-time trader and an investor. You like to keep some stocks in the portfolio either for capital gains or because of their fundamentals and dividends. Your timeframe is the same as Buffett’s so you will hold them until one or more of the previously cited goodies cease to exist.

Whatever the case, there is a mindset—closely followed by a behavior—that every investor must adopt, which is hibernation.

By definition, hibernation is a state of inactivity and metabolic depression that is common to warm-blooded animals. Once a year, they enter this heterothermic state, characterized by low body temperature, slow heart rate, and low metabolic rate.

Twitter was a dying web creature until Trump appeared on the scene. You can say anything about him but that man right there brought the bluebird back from the deceased.

For the sake of simplicity, let’s say on February 1st, 2016, when presidential primaries started, you bought some shares of the broad indices SPY, DIA, QQQ, and IWM and went on a cryogenic state, only to be wakened up 4 years later. Because you are in a deep state of inducted hibernation you can’t touch any of the shares you hold.

In the last 3 1/2 years, Trump ruled the bluebird and the bluebird ruled the stock market. But you didn’t see anything. Although there are still 4 months of sleeping left, here are the results so far:

  • SPY +54.58%
  • DIA +64.99%
  • QQQ +83.44%
  • IWM +50.87%

God bless the hibernation.

“The big money is not in the buying or the selling, but in the waiting.”

Charlie Munger —

Chart of the Day

Kneel before Twitter

Kneel before Twitter. Trump's twitter meme.

Video of the day

UVXY Confession


Today’s line up

Traders Lounge 11 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club 8:30 PM EST

In tonight’s Cash Flow Club, Coach Gino Poore will be talking about Bear Call Spreads on the Theta Research Spreadsheet.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.