Mindful Trader Commentary For December 7, 2021


Hi Guys,


Yesterday the market had a nice "up" day and then it gapped up overnight and is still going as of the time I'm writing this.


It triggered some profits for me. Both my MES futures positions reached their profit targets overnight. And for one of the corresponding SPXL positions, due to the gap up it overshot its profit target and gave a little extra profit juice. That's always a nice treat.


My LRCX stock position from yesterday also already hit its profit target, and my Costco stock position reached its profit target this morning. On the options side, my QCOM options reached their profit target as I was typing this email.


Even though it was a nice up day, it doesn't mean we're out of the woods yet on the volatility. That said, we've seen a pattern before in 2021 where the market gets turbulent for a couple weeks and then booms back out into upward price movement. So it wouldn't be a total surprise to see the market resume an uptrend.


I didn't buy any new positions today. It's because none set up. I only make trades when there is a back-tested edge supporting the trade. On days where the market has just gone up substantially, sometimes there aren't a lot of new trades setting up. The reason is because my core trading strategy is based on buying pullbacks, so if the entire market is leaping upward many times it means there may not be any stocks setting up for pullback trades.


That said, GILD from the watch list got relatively close to an entry today. I have a buy limit order open for it using the Potential Entry Price specified on the watch list, and I'll be leaving that open until the end of the day.


If you have any questions or feedback, I'd love to hear from you.


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