Hey Guys,
The market has fully recovered the ground it lost in the past couple months.
This is a great point to reflect on any feelings you may have had about the market while it was turbulent. During that period, a lot of subscribers asked if I was going to continue to stick to my strategy even though the market outlook was so grim (inflation, debt ceiling, etc). I told them that I had no way of knowing what was coming next, and that was precisely why I was going to stick to the plan. I wasn't saying that I was confident in the market's short term outlook. I was saying that I don't try to make predictions with my trading approach. Instead, I lean on historical tendencies (back tests) to make my trading decisions and I leave discretion at the door.
During that turbulence, at any point did you feel convinced that the market was not going to come back up any time soon? Did you feel substantial fear about the market outlook? If so, then it's a great time to observe that what really happened is the market did come back, despite whatever feelings or thoughts you may have had. We know from history that it has a track record of doing that! Yet in the moment during market turbulence it can at times be hard to imagine the market going up. Having lived through that turbulence and having witnessed the ensuing market recovery firsthand might make it easier to live through drawdowns or market turbulence in the future.
I rung up a couple profits this morning. My NFLX stock position reached its profit target. My MES futures position also hit its profit target this morning. That one was a sizeable victory. The corresponding SPXL equivalent trade hit its profit target too. That was four wins in a row for those SPXL trades. That was a nice little ride the last week or so.
I picked up a stock position for ALNY this morning in my main account. I also grabbed NOG in my low-priced account. There haven't been any other new trades yet today. There are a lot of energy stocks on the watch list today, so we might see some more action in that sector soon.
I had one expiring options trade that I wasn't able to close yesterday (SYY). There simply weren't any buyers for it. I have a market sell order in place for it right now so that it if picks up any value before the end of today (expiration Friday), then it will get sold. Otherwise it will expire worthless.
If you have any questions or feedback, I'd love to hear from you.