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Nice selloff today! I missed it!!

S&P PanicToday we saw another fairly large sell off. If we measure it by 2017 market standards of doing pretty much nothing but going up.

  1. Today’s decline was just a technical pullback led by a previously overbought tech sector. S&P 500 still making higher highs and higher lows.
  2. Potential trade war isn’t as bad as it seems.
  3. FAANG accounts for 26% of the NASDAQ. Not as bearish as it sounds.
  4. YoY change in Industrial Production is still trending higher. Medium-long term bullish for stocks.
  5. Housing Starts are still trending higher. Medium-long term bullish for stocks.


Today, there was no significant catalyst which would spark such sell off. It happened as Facebook scandal (which in my opinion is not a scandal at all) but it was big enough to spark a selloff of tech stocks. And investors and traders took it as a great opportunity to take profits (traders to make money shorting the stocks.

Unfortunately, I completely missed this rally to the downside!

For some reason, I didn’t feel comfortable to get in so I stayed aside. All I did today was just rolling some existing call spreads lower and I opened a few new call spreads.


 · Trading activity today


A summary of opening and closing trades.
(balance + $820.00)

Today, I missed the selloff rally to trade SPX to the downside, so we stayed out. Just rolling some calls down to capture more premium and opening new call spreads:



 · Dividend stocks to buy


Out of our watch list of 36 dividend stocks the following ones are a good buy at today’s prices (03/19/2018):


Last week, we made nice cash and it is our plan to use 50% of the options trading proceeds to buy dividend growth stocks from our watch list.

Today, we have purchased the following stocks using the strategy mentioned above:

Boeing, Inc. (BA)
Exxon Mobil Corporation (XOM)

Disclaimer: The list above is based on calculated fair value and 52wk high offset valuation. The values are subjective to our calculations and opinion and may differ from your own. If you decide to trade or buy these stocks, do so on your own risk and do your own homework. The list is not our recommendation to you.


 · What’s next?


In my last post I mentioned that this market is weak and in a possible pull back which could go as low as 2705 (or 2700) where I saw a support.

This is what I was expecting the other day.


Here was a chart which I posted last time and which made me look at this market being in a technical pullback.

S&P bear market

And today we briefly undercut the 2700 level but then the market recovered and lifted from the day lows (which was good).

Will it hold?

If not, next stop is at 2650. So embrace yourself for more selling pressure although the chance for more selling is weaker than it was today

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