How quickly things change from one week to the next. Last week, I was feeling good, and making back some of my losses. One week later, bang! Its all gone and i'm back in the hole again. Oh the pain.....
AAPL was the heart-breaker of the week. After a spectacular leap up above $200 on earnings it got crushed and ended the week at 188.50. I sold my long stock at 194.46 on Wednesday. But I rode the Jan 150 calls all the way down and i'm looking at a whopping $1500 loss each contact on that position.
Looking at the daily chart, AAPL has actually closed below the lower 28-bar range bands. That's a major sell signal and a bit shocking since I picked up 50 shares in each account on Friday just under 190. Look out below.
On the bright side, I bailed out of SXCI and took a decent profit after having been up much more. ABVT was another heart-breaker. With a high of $53 mid-week, it gave it all back and close the week at $48.40, just above my entry at $48.
In this market, you have to sell the stock when everything looks amazing on the chart. Its the exact opposite of what i'm conditioned to do, which is hang on for the big winner. Oh the pain.....
Our buddies over at IBD have switched to 'Market in Correction." Its like after all that ridiculous enthusiasm about this economy, we are finally getting our long over due fall sell-off.
At this point, all I can do is find the sunshine inside and live to trade another day. See you on the positions update.