If you like uncertainty, you may really love what’s ahead.
Of course, no one ever knows what is ahead, but I’m certain that it won’t be as certain as the market’s climb since Election Day.
Coming on the heels of Wednesday’s 300 point gain, today’s triple digit loss was muted, unless you were in metals and perhaps energy.
Those two certainly helped me out a lot in 2016 and had been pretty good to me in 2017, as well.
I put quite a bit of money into retailers in the past two weeks following the post-earnings swoons in L Brands, Target and Best Buy.
Abercrombie and Fitch, on the other hand, was just a lucky call, as it didn’t nosedive after poor numbers.
There was one other trade in the week that I didn’t report, because it was made in the final minute of trading on Tuesday and it didn’t involve the immediate sale of call contracts.
That was for Las Vegas Sands, which subsequently soared on Wednesday at which time I did sell some weekly calls, only to watch those shares give up much of their gain today.
But that’s the theme of what I really want to talk about.
If you don;t quiver too much, there have been some really good opportunities in some down beaten stocks.
You may have followed my recent trades in and out of Cliffs Natural Resources, for example.
At this time yesterday I was starting to feel pretty certain that the $10.50 puts expiring this Friday would, in fact, expire, while the $10.50 calls expiring next week had a chance to go either way.
But if you blinked your eyes at about 11 AM, you wouldn’t understand what the day ended with a need to rollover those puts to next week and now be of the belief that hose $10.50 calls may end up expiring.
From my perspective, I’ve been loving it.
It has meant paying close attention, but the ups and downs in select issues, even in a market that has been steadily moving higher, have really been enticing.
I’ve made more of those risky “DOH” trades in the first 2 months of 2017 than in all of the past 3 years.
In the meantime, my brokerage firm no longer believes that I was lost in action after the past couple of months.
I don’t know what the rest of 2017 will bring, but whether the market goes up or down, I do hope that it brings many more serial trading opportunities.
What Marathon Oil was for me in 2016, I have hopes that Cliffs Natural Resources and others will be in 2017.
The key is being able to withstand the occasional unexpected moves, such as seen today, and having faith that there will be attempts to correct those unexpected moves.
Even if those attempts are only half-hearted, as long as they can buy you some time,you are golden.
Along the way, if you can collect another 0.5% or more during the course of each week, you are way, way ahead.
Not just in your bottom line, but in the integrity of your stomach lining.