Hey Guys,
Well it was a morning of gaps. We had some major gap downs and some major gap ups. You want the good news or the bad news first? Let's start with the bad news.
The market gapped down a lot between Friday and now. The most notable effect was on my futures position, but some of my other stock positions got dragged down too.
Now the good news:
1) ATVI jumped big time overnight! That's worth an exclamation point. It was a stock position I had in my low-priced account. I bought it for about $63, set a profit target for about $66, and sold it this morning for about $86. That's a big boy gap up. My account went up 8.4% just from that one position.
2) CTXS from the main account also gapped up past my profit target. It wasn't the goliathan gap that ATVI had, but it gave me almost 50% more profit than my profit target would have given.
3) Those gap-ups happened despite the market going down noticeably. Not only that, but my portfolio in general didn't get hammered too hard by the market's gap down (partially due to limited open positions). That's a nice thing. Last week, when the market was down at this same level, my combined portfolio was 8-10% lower in value than where it is right now. I'm withstanding this bout of market turbulence much better.
I picked up some new positions today. In the main account I bought stock positions for ATO and CRH. In the low-priced account I bought stock for GM. No options trades have set up yet today.
I generally like loading up on positions when the market is noticeably down like this. So I wouldn't mind taking on more trades right now. But I'm not going to force the issue. I'm going to stay in lock step with the back test like always and wait for trades to come to me.
If you have any questions or feedback, I'd love to hear from you.