I closed several of my loosing psotions like TEVA, AAP and M, but M only 2/3 on the day where the stock gapped up 9 %. I want to reduce my loosing positions and hold the winning ones. IMO is a winning trade but not that quality company i am searching for. A blended P/E of 45,6 is too critical for me regarding to the overall political development especially in the middle east.
XLE is the most underperforming sector of the SPY and i bought a stake on high volume after breakout of a 2 months high.
The broader market, especially the Russell 2000 is showing weakness although the mature bull markets in the SPY and QQQ still looking ok. In the last 2 weeks we had minimum 4 Hindenburg omens and higher OEX PCRs.
The single hardest lesson in the trading business is to take the losses short and keep with winning positions. This is what i am doing for now. I am fully aware that “shock” in the bond markets or a war in the middle east can cause a loss of > 10 % in my portfolio, this is the general risk of each trader. I am slightly long and hedged with my SPY short position. Although we have the best season for rising stocks now i am cautious and will only go long with fundamentally undervalued stocks which are not easy to find at the moment.
The selloff in the high yield bonds like HYG is also a reminder to stay defensive. Time will tell the story.