When You Should Stop Trading...

THE WEEK

This week is the heavy earnings announcements week with a high percentage of Technical and Bio Tech stocks reporting.  This week sets the tone for the quarter for me.  I watch to see if companies are at least matching what the analysts are predicting.  I do this for two reasons:  1) how in touch with reality are the estimates and 2) am I able to spot weak and strong areas in the Market.

I am not the only one who has been waiting and watching for this week.  The Market has been in a holding pattern going sideways.  Here’s a look at NASDAQ.  As you can see – a holding pattern for the past three weeks

LOOKING AHEAD

This week we will probably see a pretty volatile Market especially if the Earnings Announcements hold any big surprises.  I will not be sticking my neck out on any longer timed trades until the dust settles.  Because of the sideways nature of the price/action, I was OK with doing a couple of Iron condors.  Other than those I am in a wait-and-see mode.  Call me chicken or call me smart.  All that matters to me is that I not hand back any of my greats profits just because I feel “I have to trade”.  Sometimes doing nothing is the smart trade.

HOW AM I DOING?

Thursday was the kickoff day for this Quarter’s DATA class series. On Friday placed two Credit Iron Condors trades and I am up $29 for the week.  Yeah, I can go to the movies!

This week’s Deep Dive on Thursday’s webinar

SMART COOKIE TRADING

“How to let the Market pay you to buy stock!”

It is much more than using covered calls.

I learned this trade from one Smart Cookie, Mr. Warren Buffet.