Hey Guys,
The market is still in roller coaster mode. This time we're on a more fun segment of the ride. The S&P 500 gapped up about 100 points overnight. Is this a sign that the market is starting its rebound? Or just another sharp turn on a back-and-forth volatility sequence? There's no way to know for sure, and neither would surprise me at this point.
A lot of my positions are looking a lot better today than they did yesterday. All three of my accounts are up a combined 12% from their lowest point yesterday (unrealized). And one trade actually hit a profit target yesterday (PM options). There are a handful of others that are getting close this morning.
There were only two tickers on the watch list for today (compared to more than 25 on Monday). The reason is because there aren't many stocks left that meet the "uptrend" criteria for my trading strategy. The market dragged so many stocks down with it over the last two weeks that it derailed the uptrend pattern for all but a few stocks. It's actually like a built-in mechanism that limits my losses at times when the market has a major breakdown. If, for example, the market starts to crash right now, I'm not going to keep taking on unlimited new positions all the way down. I only take trades on stocks that are in an uptrend, and if the market crashes there comes a point where there are no uptrending stocks left to take trades on. That caps my risk exposure for stocks and options. It's part of how losses get limited with my trading approach.
The only new trade today is a stock position for PGR in the main account.
If you have any questions or feedback, I'd love to hear from you.