Bought RBI.to
Sold BMC (stock was not able to hold its 50dma)
Shorted SSW
Sold AMZN (stock was not able to hold its 50dma)
Sold May FXA 72 Calls (Friday was options expiration day)
This week's market correction was strong enough to eliminate 2 of my long positions. To me, this means that the market is trying to tell me something, and that is to start exploring the short side of the market again.
The first stock to succumb to the selling pressure was BMC, and after the stock was eliminated from my portfolio, I shorted a stock, SSW, as being stopped out of a long position must mean that the market is starting to weaken.
There are 2 scenarios that can occur next week:
1) The market continues to fall, and more of my long positions will get stopped out. If this scenario occurs, then I will replace all stopped out positions with shorts, and attempt to profit from the continuation of the long-term bear market in which we are still in.
2) The short term rally continues, and my 1 short candidate will likely get stopped out. If this scenario occurs, I will replace my short with another long, and assume that this week's correction was just a bump in the road within a strong bear market rally.
Here is how my portfolio looks going into next week:
Long CAKE
Long EWA
Long HANS
Long OCN
Short SSW
Long STEC
Long RBI.to
Anyway, here are some short candidates that I may consider for next week:
