Since I have resumed writing right in the middle of a bunch of open trades, I have the urge to write about my positions, but feel like it would be a little disingenuous to just come out and say I’m long $AAPL, $CRM, $PCLN and $BAC (I’m not). This will be a multi-part series (presented in alphabetical order) because I don’t have enough juice to sit here and write about each of my 12 positions right now. I will annotate the charts with the most important information and follow with some comments.
At the time of this purchase, the industry group performance metric that I use had Financial Services slightly outperforming the S&P 500…it has underperformed since March 9th…so I got kind of lucky here. Reason being, I don’t scan stocks in industry groups that score lower than 0 (in my algorithm, the S&P 500 = 0). Anyway, in bull markets I like to buy pullbacks…over time that’s where I have found my niche. Notice the volume drying up on that downward swing in early March…I recall feeling very strongly about this trade when I saw that small white candle on 3/7. Nevertheless, my confidence had been kept in check by the shakeout in late February, so I somewhat hastily sold a contract on 3/12 for a small loss to lessen my exposure. This thing has gone batshit since then…up almost 200%. If the calls hit 12.00, I’m out with a 100% gain.
I have traded this stock before with great results, so when I saw that beeeutiful setup on 3/7, I was ready to jump on this. As mentioned, I had an itchy trigger finger so I stupidly (in hindsight) took profits on one contract the next day. The latest pause in price was not very alarming, so I was able to ride it out with relative ease. Having a small position and being patient allowed me to take in the price advance on a day like today with satisfaction. My position is well enough in-the-money that time decay isn’t much of a factor at this point, so I’m happy to let it ride for a while.
I had been stalking a position in $CVS since 3/15. Something smelled fishy so I decided to hold off on buying. I didn’t pay attention to it after that, then flipping through charts a few days later, it again caught my eye…and this time looked really tasty. On 3/22, after seeing that limited price movement I decided to go long right before the close. My next move will be to take off 1/3 or 1/2 of my position depending on price movement. 1/3 if things go well, 1/2 if I think the clouds are darkening.
Sure these are three winners…but I was also long a full position $KBH into earnings last Friday that fucked me sideways (horribly dumb mistake on my part) with an egregious realized loss. My losers don’t stick around long, but they do sometimes leave a lasting impression.