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The pain

S&P 500  2612.62 -45.93 (-1.73%)  Dow 30  23857.71 -344.89 (-1.43%)  Nasdaq  7008.81 -211.74 (-2.93%)

S&P PanicThe rebound on Monday didn’t last long. Today, the markets tanked again dragged down by technology stocks. So far 200 DMA holds but the more often we knock on it the more likely we break down. Also, the markets are now creating lower highs. Technically, this is a problem.

We may see bounces now up and down. We have about 2 – 3 months to recover from this correction and hopefully, it will not turn into a bear market. As of now, we are heading to it.


 · Trading activity today


A summary of opening and closing trades.
(premiums received / paid: – $2996.35)

Note: This is a cash flow of credits, not profits!

Today I rolled a few trades but overall it was a negative cash flow. I just didn’t feel comfortable with the positions so I decided to close them (some SPX position). The trades were still closed for a profit however. The cash flow is negative since I was closing for higher price for which I didn’t have an offset today. For example, a few days ago I opened the trades and collected $6,000 credit, today I closed it for $3,000 debit, thus today it is shown as negative $3,000 cash flow although the trade was a profit (note the numbers are just illustration, not actual numbers).


Definitely, this market is now a test of my nerves. This selloff will not last forever and it will recover and go higher. The only question is when, how long this selloff will last, and will I be able to sustain a prolonged time of depressed trades?

Today, I closed trades out of panic. I must admit it. I was too quick pulling the trigger.


 · Dividend stocks to buy


Out of our watch list of 37 dividend stocks the following ones are a good buy at today’s prices (03/27/2018):


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.


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