Hey Guys,
Well that market boom from Wednesday was short-lived. We are smack dab in the middle of more market volatility. Since the market opened yesterday, the market has dropped 100 points.
The timing of it wasn't particularly fun since I had two options positions that were scheduled to close at the end of the day yesterday. For the second week in a row, the market happened to take a big dive on a Thursday and deflate most of the value out of my options at the last minute. As frustrating as that might be, it doesn't mean that there is some sort of long term trend where Thursdays generate losses. It's only two data points, which is not statistically significant. It's just a sequence of events that, though perhaps unlikely, did happen and was not to our benefit. Those sorts of things go the other way too sometimes.
One good thing about the timing of this market drop: I had very few positions open. Normally when the market drops 100 points my portfolio is down noticeably, but this time around the impact is not nearly as significant since I happened to have limited exposure.
With the market coming down today, it set up some new trades for me. I picked up shares of DHI in my main account and I picked up options for DHI in my extra options account. I also picked up shares of TOL and PHM in my low-priced account.
More trades might set up later today, particularly if the market keeps thrashing around. My watch list shows the potential trades I'm prepared for. I have buy limit orders in for each ticker on the watch list right now. So if AAPL gets down to $168.08 today, for example, then it will trigger my buy order and I'll add that trade to the website.
If you have any questions or feedback, I'd love to hear from you.