Hey Guys,
The market tumbled some in the last part of the day yesterday and has not yet come back up.
One way I monitor the market's performance is by keeping an eye on the MES futures, which are highly correlated with the S&P 500. The MES futures are in the 4350 price range at the time I'm typing this. It's amazing how that price level felt like "good news" last week, and this week it feels like a setback. The same exact price point can elicit different feelings depending on how our minds try to assign meaning to it. Simply having an awareness of this helps me detach a bit from any thoughts or emotions that come up about the current price of the S&P 500. Since I follow a rules-based trading approach based on a deep back-tested history, it makes my life easier if I let the market run its course without being emotionally invested in its outcome.
No new trades have triggered yet today. DAL came close first thing this morning, but didn't quite get there. I've got buy limit orders set up for the tickers on my watch list, so if any of those stocks get to my entry price I'll be ready to take action.
Speaking of the watch list, yesterday DRI from the watch list triggered, but I already had a full slate of positions so I passed on it. In my main account, I typically take a maximum of two stock trades per day (which helps me manage my buying power and portfolio diversification). But if you want to take on more trades, you can keep an eye on my watch list for other trading opportunities. There's also a section below the watch list that I update once per day after the market closes. It shows any tickers that reached their potential entry price that day.
I have one futures position reaching its time limit tomorrow. I'll close that position first thing in the morning when the market opens.
If you have any questions or feedback, I'd love to hear from you.