Hey Guys,
This morning the S&P 500 is down a bit from where it finished last week. Yet a lot of my positions are up. That works!
I bought CBOE this morning (I bought the stock in my main account and the options in my extra options account). That one went straight down out of the gate. I have two things to say about this:
1) It's not over until it's over. A bad start doesn't mean the trade is ruined. I just kick back and let the trade work itself out and stick to my predefined exit parameters.
2) When I enter trades, sometimes the price doesn't immediately move much. Sometimes it immediately goes straight down. Sometimes it goes straight up. It might all even out as far as which way the price goes initially, as evidenced by this study I did. So today if you were late to the trade and wanted to follow it, you might have gotten a great discount relative to what I paid. Yet on other trades, the price may have gone up noticeably before you could get to it. It can be helpful to see that in the big picture, it goes both ways. And knowing that might help you make an informed decision about your own game plan for following my trades.
I also bought NDAQ this morning. That makes two new financial stocks in the portfolio.
Over the weekend I shorted MES futures (the futures market opens on Sunday at 3pm Pacific Time each week). The strategy for that one was if the price of the MES futures (which essentially represent the S&P 500) get over-extended beyond the upper Keltner Channel, it might be more likely than not that the price will go down a bit before another huge drive up.