Markets still showing incredible resilience. Yesterday coudl have been worse. We tapped that 20dma which was a level everyone was watching for. Judging by most of the stream it seemed everyone was looking for a breakdown of that level. I fortunately am not such people and bought stocks with great vigor yesterday.today is opex day..so expect the unexpected.. I find on these days i go smaller position and keep a looser stop so that i dont get shaken out of positions.
This will keep my dollar risk to my portfolio the same as my position size is smaller in correlation with the looseing of my stop (i keep port risk at 1% right now)There was still some mayhem yesterday…which happens in earnings season.. we are priced in for a certain scenario and this is what you see when the market has blown the balls of the bears for so long. what we have been seeing last few days is actually a very typical and predictable price action. As always when market dips there will be some losses.
As long as they are controlled and you are able to stay in the game so when the right opportunity come you are able to jump in. Yesterday I took all sorts of losses in my port getting stopped out in $gbg (-5%) $urre (-7%) and some other small losses and it didn't bother me one bit. losses are part of the game but when you get a dip in the market holding on to your stocks where the setup is invalid will punish you very hard. Just sell and move on. doing that gave me the cash to find setups that were actually working when the market itself presented and opportunity for a low risk high reward situation. Next thing you know we are hitting $ddss $pard $blti $rprx $cbli and a host of other winners to make up for it
