That’s why I say managing risk is so important

Yes, it not a fun subject to talk about, but it is not something you cannot afford to ignore. From the highs to the lows of the day, SPX sold off 40 points and broke its key trend line. That is a massive swing considering how low the volatility has been of late and how small the point moves tend to be on a day-to-day basis. But you can’t ignore the risks and when the market does sell-off, it will do what you saw yesterday and take the elevator straight down. 

The selling may be over with, or it may have room to go still. But I am sitting 100% cash. Yesterday’s moves took me out of my stops, and I booked some profits. I’m okay though because, like I have been saying all along, I’ve been increasing my stop-losses so that I would come away with trades that preserved their profits. 

Now flexibility is all in my corner and I can take this market on from any direction it wants to take me.

S&P 500 Chart

Current Stock Trading Portfolio Balance: 

• 100% cash

Recent Stock Trade Notables:

• Facebook (FB): Long at 134.27, Closed at 139.23 for a 3.7% profit. 
• CDW Corp (CDW): Long at 58.65, closed at 58.91 for a 2.7% loss. 
• Redhat (RHT): Long at 82.41, Closed at 83.53 for a 1.4% profit. 
• Ambarella (AMBA): Long at 57.15, Closed at 55.52 for a 2.8% loss. 
• Alibaba Group (BABA): Long at 104.73, closed at 106.05 for a 1.3% profit. 
• Broadcom (AVGO): Long at 218.63, Closed at 222.71 for a 1.9% profit. 
• American Airlines (AAL): Short at 44.76, Closed at 44.03 for a 1.6% profit.
• UPRO  (Day-Tade): Long at 95.35, closed at 96.50 for a 1.2% profit.
• OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss. 
• FNSR: Long at $34.25, closed at 34.70 for a 1.3% profit. 
• UPRO  (Day-Tade): Long at 96.92, closed at 98.03 for a 1.2% profit. 
• JP Morgan Chase (JPM): Long at 87.21, closed at 89.67 for a 2.8% profit. 
• Chevron (CVX): Short at 110.03, covered at 111.85 for a 1.6% loss. 
• Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit. 
• Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit. 
• Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss. 
• Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit. 
• Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit. 
• Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.