So what do we have here? A rally in the markets for over a percent, again. And what does that mean? That I screwed up again. Getting out of good positions too early. Err!
Of my late October positions, I am still in 4 of them. Unfortunately, they are all currently in the red. The only one that I got out of, an SLV Call, was profitable at the time. Get this. If I had stayed in it, I currently would be up over 66%, not including commissions. Again, err!
What good news I do have is that I am not suffering nearly as much as I was before. Also, I am have a little more reason to get out of, or stay in, certain positions. Let me go over those reasons.
CVX is oscillating in an upward trending channel. The slop is not that great, but the good news is that I could buy another position at the bottom of the channel and dollar cost average my position. If the numbers work out, I might just do that. The big question is do I have enough capital to pull it off?
Prior to this month, while traveling in it's current channel, FPL would travel down and then sideways, as a contrary move, and then down again. Since the beginning of November, it has been traveling more up than sideways or down. This is good news as it could be suggesting that the change in direction is occurring and I should start profiting from my patience with it. In fact, it actually has unrealized gains. Now, I just need it to break the resistance trend line of the channel. That is a buck away.
Another of the bad positions I got into was WFC. Yesterday, I mentioned that I was putting a stop-loss order on it, and today it avoided execution by gaining value. Unfortunately, it is still down quite a bit and has a downward trend line to break through. My stop-loss order on it was GTC, or good-till-canceled, so I am going to leave it in case it doesn't continue to go up.
My last bad position to get into is USO. Yesterday, I also mentioned that I was putting a stop-loss order on it, and today it also avoided execution by gaining value. But I am not going to be as patient with it as I am with WFC because it is in a downward trending channel. Although this kind of trend tends to explode upward at some point in the future, there is no certainty on it. It is better to wait until after it explodes upwards before getting in. For that reason I tightened the stop-loss order I have on it. If it doesn't continue to gain value and break this bearish trend I will be cutting my losses.
Now for my Covered Call on MU. It is back to break even. It's movement today has broken it above a resistance line it formed a few days ago, and it closed above it. This is usually an indication of further upward potential. That being said, I have the opinion that it should be able to continue upward. It just needs to break above it's 50 day moving average with some conviction to confirm my opinion. That is only 20 cents away, which is within it's current ATR. So if tomorrow is another bullish day, there is a good chance that it will. I will just have to wait and see. That is my opinion, you can take it or leave it.
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