It's been a short week, but an interesting one.
There’s a big disconnect on the stock market vs. the main street.
All three major indices opened higher Tuesday.
But, the Nasdaq 100 started to see money rotate out of the tech five and into industrials and materials.
Right now, we are seeing stocks slosh around.
We’ve been rallying on recycled news, which is any positive COVID-19 vaccine headlines.
The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is holding at 30.
That means we are still 2x the average level of volatility, so we will continue to see markets whip around.
Like the afternoon reversal in the market on Thursday.
As we head into June, it’s going to be interesting to see how “Sell in May and go away” pans out.
As I mentioned above, there’s a big discount from the market and the real world.
Yet, the only thing that matters is turning our dollars into more dollars.
The best way to do that is to follow the system to profits.
We do that with the right timing and managing our winners are essential.
Portfolio Update
First, let’s talk about the positions expiring today…
Unfortunately, we don’t have more time for these positions to play out.
Taking losses isn’t fun and can be painful. That is why position size is so important.
There’s nothing that you need to do and they will be removed from your account by Monday morning.
Over the long haul, your winners will outshine the losers… We stick to a system.
On Tuesday:
Right now, our open positions are:
After-Action Report
Virgin Galactic Holdings, Inc. (NYSE: SPCE) May 29, 2020, $25 call
Date: May 11, 2020
Reason: Our system spiked on sure bet activity that these options would pop higher in the coming days.
Outcome: Expired worthless.
Notes: We took our shot, but this one didn’t work out. This is a high beta name and was swinging for the fences on this play. Losing isn’t fund and this loss falls on my shoulders. We’ll get them on the next one.
In case you missed it, check out your first edition of Mail Bag Wednesday.
I answered several of your most pressing questions I’ve been receiving.
I’m looking forward to next week, so make sure to send yours now to [email protected].
Your privacy is important to us and we will never reveal your full name when answering questions or sharing your feedback.
Have a great weekend and I’ll have a new trade for you on Monday morning.