Hey Guys,
The market went down again overnight. The S&P 500 is around 4,260 right now.
When we saw that hammer candle last week on the S&P 500 chart, I talked about how that might be the first sign of a market rebound. The market rebounded the first day or two after that candle, but that rebound clearly has not been maintained. The market is still above the support level of that hammer candle, but is showing signs of volatility.
The market slide caused me to hit a few stop losses on stock positions this morning: ABBV, VLO, and HMC. That wasn't a fun pill to swallow. What I try to remind myself if that in back tests, there were periods just like this, which means that if I want to achieve the back-tested results, I need to be able to live through drawdowns from days like this. It's a tough challenge because there is very real risk involved.
I picked up some new positions today. In the main account, I bought stock for CNC and AMGN. In the options account, I bought options for CNC.
If you have any questions or feedback, I'd love to hear from you.