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Author Message   Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3942 Registered: 05-2011 Posted From: 24.164.46.35 Rating: N/A Votes: 0 Posted on Thursday, January 20, 2022 - 9:42 am:    ScalpTrader Morning Notes I continue to take a disciplined approach of scaling into select names that meet my criteria of offering attractive absolute value or relative value. Despite the official Nasdaq correction, valuations remain rich in my opinion, so most new positions fall into the relative value category. As an example of this approach, yesterday I initiated a Swing position in VRM. My position size was 1/4 of a full position allocation vs my usual initial entry of 1/3 to 1/2 size. The smaller size reflects my recognition that the market for growth stocks remains slippery and is struggling to find its footing. It would be easy to ignore these stocks during such a violet downdraft, but time and again we've seen violet rallies that have resulted in rapid 40-100% gains in the types of stocks I've been buying. Plus, I didn't start buying until after the stocks had already lost considerable value. With respect to VRM, the stock is trading up 6% in pre-mkt to $7.80 after Keybank upgraded to Overweight from Sector Weight with a $13 price target. The firm is also making a Relative Value argument, pointing out that VRM trades at a steep discount to CVNA and thinks the United Auto Credit acquisition will expand VRM's addressable market. Some of the other team members are doing a fantastic job identifying Shorts. This is not an area that I excel, so want to make sure people are paying attention to their work if looking to play both sides of the market. I'm certainly capable of generating Short ideas and have done so for many years, but when I look at long-term performance, Shorting has not been an effective use of my mental bandwidth.