Hey Guys,
The S&P 500 has dropped about 75 points since my last email. The market has been red all week, and this is the first clear sign of a rejection of that 6,000 price level for the S&P 500. It's around 5,900 right now.
My PM option trade had a great turnaround yesterday and ended up with a profit. It had started out the day in the hole more than $300 per contract, so it was a significant move for it to end up with a profit by the finish line.
My LDOS stock trade had a much worse outcome. It's the second stock trade this week where I hit the stop loss in one day. And in this case, the loss was oversized because the price this morning was actually lower than my stop loss price. It's interesting because that's only happened to me one other time in the last few months, and then this week I had two different trades where it happened to me.
It's worth noting that I really liked the LDOS trade setup. If I saw that setup again, I would take that trade in a heartbeat. None of us can tell the future, so the best we can do is use as much intelligence as possible to try to make good decisions. That chart setup looked great and has served me well many times in the past, but this time, it just didn't go my way.
Given that the S&P 500 is down more than 100 points since the start of the week, it may have been to my benefit to have a light trading week up until now. As those days kept elapsing with no new trades, it was hard to be patient at times. But if we had loaded up on positions, then we might be showing a lot more red in our accounts given the big market drop this week. So sometimes, not taking trades is actually be a good investing decision. And with my options account, my light trading activity not only helped me sidestep the market plunge, but it actually generated a profit this week.
There were new trades today in both accounts. In the stocks account, I bought positions for CBRE and JBHT. In the options account, I bought options for RNG and GILD.
If you have any questions or feedback, I'd love to hear from you.