Overall the week was strong for us. The market didn’t do us any favors when the gains we held in Netflix (NFLX) over the weekend melted away over the first three trading sessions of last week. Fortunately we jumped back in the trade and made those profits back when it became obvious that the stock was going to turnaround. But it didn’t turnaround enough. Had the stock pushed through the declining resistance that started with the May highs, and currently at $98, I would have likely kept it over the weekend. Depending on the price action this week, I won’t rule out the possibility of us jumping back in the stock.
We also have a number of solid trade setups working in our favor right now, and freeing up some capital that we can put towards new trade setups next week will also come in handy.
The market’s sideways price action plagued traders all of last week. I actually think we made the most of it. Volume picked up a slight bit but the market traded in an incredibly tight range leading to a snooze-fest for most of the time. The market is keeping traders wondering when it will in fact experience a pullback of any kind. But when the market is dull and quiet, that is not the time to be net short on the market. I’ll still continue looking for ideal short setups that we can add to the portfolio. We shorted Jetblue Airways (JBLU) on Monday, and even though the market traded flat on the week, JBLU traded lower. Yeah, it would have been beneficial for us to stay in it, but the problem though is we were in it for four days, and during that time it just didn’t do enough, and when it started to rally, that was my cue to get out, particularly since it showed signs of wanting to bounce the days prior. It was a hedge to the portfolio and anytime we can not take a loss on a hedge while our primary trades continue to profit, that is a good thing. Airlines can get a notable bump out of nowhere and when the stock was trading in idle, I didn’t want to risk it any longer.
Overall the week had its challenges, but it turned out well for us. I look forward to the week ahead and the challenges and opportunities that it will present us with.
