Hey Guys,
The market ended with a red day on Friday and then had a big drop over the weekend. The S&P 500 is down roughly 150 points since the start of the day Friday. Two scoops of volatility for us to contend with!
I had a couple of stock trades hit their stop losses in the turbulence: EOG and HES. My COP stock position reached its time limit, and that one also ended up with a loss.
Even though the market had a big drop, I'm not freaking out. I've been through situations like this so many times. It's not fun to take the losses, but by the same token, we knew from research and, in my case, experience that there will be drawdowns along the way. So it's ok and normal for there to be losses and for there to be market turbulence. These are not new or unexpected things.
Not only that, but just a week ago, we saw a big market drop and the market promptly started rebounding. I'm definitely not saying that is sure to happen this time, as no one can predict with certainty what will happen next in the market. But we have clear recent evidence that a big drop in the market isn't the end of the world.
My goal is to stick to the plan, as always, so that I can stay in lock step with the backtested approach.
I picked up new positions today. In the stocks account, I bought positions for STX and BMO. In the options account, I bought options for STX and EPD.
If you have any questions or feedback, I'd love to hear from you.