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Trumpfear

Lately, I was quite busy and actually not in a good mood, so I wasn’t publishing my trade adjustments against US Steel (X) and Seagate Technology (STX).

I was able to roll those trades quite successfully last week although both stocks were losing after a big selloff in Wall Street.

And tomorrow, it seems we will see yet another selling as fear returned back to the market. It was quite obvious to me that Trump is not going to win nor deliver any of his promises. He thinks it is a piece of cake to govern the country of 300 million people.

However, I was riding the optimism others were happily sharing.

Looks like, after Trump’s loss of repealing Obamacare the same people now are in fear that he might have the same issues to deliver his other promises.

Duh!

Unless Trump becomes a supreme and only rule of the United States, a sole dictator (who he for sure is and thanks God for the Constitution!) he has to negotiate. And although he makes things look like he is a winner, he actually is not.

He calls himself a great negotiator who masters an art of a deal, but a recent video I saw today following him since 1975 unto 1990 show that he actually was quite bad in making deals.

Watch for yourself and make your own judgment.

 

video

 

So, the optimism seems to be gone for some time and we may see some selling coming.

It may be a good thing. I depends where you are and what your plans are. Mine are well defined. I trade options and invest into dividend stocks. With options I can trade both sides. But I trade strangles and large and violent moves are not very strangles friendly.

Yet last week I could roll my trades however, my put sides are still in the money and in danger. What danger? A danger of assignment. The deeper they get the greater danger of early assignment. If this continues, I will have to start enlarging my expiration time from weekly to two or three weeks. I will see next week. If selling takes over, it will be a sure thing.

As a dividend investor I actually welcome this selling. I will be reinvesting my dividends and buying more shares for less. What a gift!

I still look at my dividend investing from the next 25 years investing horizon perspective. And this selling, or even Trump rally is quite insignificant.

For some time I have been recording events in the S&P 500 chart. Just for curiosity. I do not do it to predict the market, I do not do it to look for reasons and excuses. I do it just as a time stamp. I want to look back and see how futile we investors and traders as a crowd sometimes are:

 
S&P 500 time stamp
 

This “event recording” became my new pet. When I see all the talking heads predicting the disaster and it doesn’t happen I am laughing. And also when they are too optimistic, predicting new highs, market going to the moon and it crashes, I am also laughing.

Tomorrow we may see Trumpfear in the market.

I will be rolling my existing trades lower and manage them through the turmoils in my trading account. In my ROTH I will continue holding my dividend stocks and trade options (Iron Condors, cash secured puts, covered calls).

I wish you all success in coming week. Stay calm and do not panic. There is no reason for it. There never will be and never has.
 





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