Good morning!
And I do mean GOOD morning. Wow, what a complete reversal from where things were just a couple days ago. I had four positions hit profit targets in the last 24 hours, and I have a handful of others showing a strong unrealized profit.
On Monday we were feeling a lot of heat and yet I still stuck to my plan. It's nice to see signs that it might pay off. That's what I love about a rules-based approach: the plan is laid out in black and white for me. I don't have to try to guess where the market is going or what to do. If I were playing guessing games on Monday, I'm not sure that I would have guessed that the market would immediately explode right back up like this. There seemed to be a lot of "fear" in the air with the market on Monday. I'm thankful I didn't have to try to guess what to do!
I bought some CLX options today. I also bought DHR stock today. DHR was not on the watch list because as of yesterday the price was nowhere near the target, but it had a big price drop today and triggered an entry, so I bought it. That position took a lot of heat initially after I bought it, which may have presented a nice buying opportunity for anyone who wanted to follow me on the trade.
Earnings alert! A word of caution on DHR and TWTR: they both have earnings being reported tomorrow! Things can get really volatile for stocks when their earnings get announced. It can, at times, be extreme (in either the good or bad direction). I will continue to hold them through earnings because, over time, back tests show there might be an edge in my favor to doing so. But I have had a few trades this year that I held through earnings that went from being profitable to hitting a stoploss in a heartbeat. So if that isn't a risk that you want to tangle with, you can consider exiting the positions at some point today to avoid the potential volatility that might come tomorrow.
If you have any questions or feedback, I'd love to hear from you.