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Attached below is my trade summary since the $3K-$100K challenge began. While this week’s $4000 setback isn’t fun, I am still up big over the past 4 months. I maintain my bullish bias, which is contrary to almost everyone I know so we will see what the week ahead brings as far as trading goes. Have a great weekend!
With most of the Asian markets closed last night, the market is rather sluggish this morning. Even though the market is only slightly lower, over 70% of the SPX stocks are in the red. This drop is putting many more stocks below their 7 day moving averages which increases the risk for the bulls.
For a bullish entry, I want to see something like BAC close above its 7 dma and I would be tempted with some bearish puts on the market if stocks like BAC and GS weaken into the close. For now, I will let the morning trade play out since strong entry signals are rather sparse.
I am holding all 3 positions over the weekend. All 3 positions are working and remain in highly bullish trends. The market remains overbought as news sentiment is riddled by the bears. I still contend the contrarian position in the market is higher at least for another little while. Until more stocks break below their 7 dmas I cannot get too excited about selling my positions or taking a bearish market stance. There were some nice bearish setups earlier this week that just got blasted as shorts continue to scramble and cover. I will send out a separate post with an account update, but it looks like I should end the week around $32,000. (many thanks to TSO)
I took off my GS trade. Took off the 10 contracts at 9.10 for a $5700 gain. This brings the account value towards the $12000 level. My exit is nothing more than profit taking. I believe GS continues higher, but I would be a shame to give up the profit. I will look for another entry with options with more leverage going forward.