š· MARKET TURBULENCE & HOW I (MIS)HANDLED IT
This was a challenging week, and I won’t sugar coat it with a dessert paired with a glass of Port. World events rattled the market in ways I haven’t navigated before, and I adjusted my trading strategy accordingly. I made some good trades this week, but I also made some questionable moves that cost me money in both real dollar losses and missed opportunities.
- I sold SanDisk Corp (SNDK) for a nominal gain, and then panic sold Ciena Corp (CIEN) during Thursday’s Power Hour. If I had held onto them, I could’ve pocketed +5% gains on both sales during Friday’s opening bell.
- Buying LULU (Lululemon Athletica Inc) after Friday’s opening bell crash repeated a mistake I made with an earlier trade: never buy a stock when it drops just above a psychological number barrier.
FOMO (Fear Of Missing Out) goes against my trading rules, but when I view those three trades collectively I noticed a pattern that my head wasn’t in the game. I removed myself from Friday’s trading session, perhaps my smartest move of the week, to both preserve this week’s gains and give myself a head start to clear my head over Labor Day Weekend.
I've already made my biweekly profits sweep, so let's review...
š THIS WEEK’S PERFORMANCE:
Please note: My core strategy guidelines, which include updates on how I measure success, have been moved to a permanent page. Please click on Robzilla’s Rules on the tabs bar below the blog title to review them.
- Trade record: 6 wins, 2 losses, 7 ties (6-2-7). My Oracle Corp (ORCL) trade was a disaster, but I quickly offset it with a few intraday trades. I also made significant progress chipping away at my SanDisk Corp (SNDK) wash-sale addition to the point my next trade with the stock will only carry a nominal addition to its average cost basis.
- My portfolio’s growth: Nominal gain. I didn't hit my 1% goal but I'm still pleased with the dollar figure of this week’s results.
- Does this week's profits sweep pay for a trip? Absolutely! I’ll even tell you about my most recent winery getaway at the end of this post.
š¦ MY TRADING DIARY
To maintain strict personal privacy, all individual share quantities and raw dollar values are omitted. Instead, allocations are tracked conceptually by entry targets and realized percentage gains.
MONDAY
- I purchased TTWO (Take-Two Interactive) after the opening bell dip. Even with a wash-sale addition, I felt it was a good opportunity to make a short-term gain.
- DKS (Ulta Beauty Inc) was sold for a +2.6% gain after the opening bell.
- MU (Micron Technology Inc) was sold for a +1.0 gain to free up capital after sideways action.
TUESDAY
- I purchased MRVL (Marvell Technology Inc) and LITE (Lumentum Holdings Inc) at unexpectedly low entry points after an opening bell sell-off.
- I dumped ORCL (Oracle Corp) at a -4.1% loss to preserve capital.
- I sold MRVL (Marvell Technology Inc) for a nominal gain after a midday rally stalled. I did the same with LITE (Lumentum Holdings Inc), but pocketed a +1% gain.
WEDNESDAY
- I purchased MRVL (Marvell Technology Inc), SNDK (SanDisk Corp) and LITE (Lumentum Holdings Inc) after an opening bell dip.
- I sold BBY (Best Buy Co Inc) for a nominal gain and KVUE (Kenvue) for a nominal loss to reshuffle my defensive dividend position.
- I purchased GLPI (Gaming and Leisure Properties Inc) and VICI (VICI Properties Inc) to replace BBY and KVUE in my portfolio. Both traded near 52-week lows and offer higher annual dividend yields.
- I sold TTWO (Take-Two Interactive) for a nominal gain to free up capital after sideways movement.
- I sold SNDK (SanDisk Corporation) and MRVL (Marvell Technology Inc) for +1% gains at the peak of their midday rallies.
- LITE (Lumentum Holdings Inc) was sold for a nominal gain near the end of Power Hour.
THURSDAY
- I purchased VSXY (Victoria’s Secret) at a discount after an earnings miss.
- I also bought SNDK (SanDisk Corp) despite its sideways movement after the opening bell.
- I sold VSXY (Victoria’s Secret) for a +3% gain about an hour later.
- I sold SNDK (SanDisk Corp) for a nominal gain after a brief rally that stalled.
- I purchased CIEN (Ciena Corp) at the beginning of Power Hour believing I’d make a short-term gain on it.
- I panic sold CIEN (Ciena Corp) for a nominal loss after it dipped over 1% within twenty minutes.
FRIDAY
- I bought the dip on LULU (Lululemon Athletica Inc), believing I could replicate my VSXY success once I felt it had found its floor just above $100.
- I dumped LULU (Lululemon Athletica Inc) for a -1.7% loss to preserve capital after its price fell below a psychological number barrier for an extended period of time.
š¦ VICTORIA’S SECRET: WHEN BUYING LINGERIE IS A WINNING MOVE OUTSIDE THE BEDROOM
I was shocked when Victoria’s Secret (VSXY) was severely punished over missing its quarterly revenue estimate during Thursday’s pre-market session. During its opening bell sell-off, when it fell nearly 14%, I did my due diligence on the company to possibly buy the dip. Once I determined its financials were sound and the stock found its floor, I deployed capital with the caveat I will bail out if its price dips 2% below its average cost basis.
The stock rallied as I digested my breakfast, and once the rally stalled I exited my position with a 3% gain — the best outcome I could ever hope for on an intraday trade.
š¶ AFTER HOURS: EVERYBODY’S HOLDING FOR THE WEEKEND…
As Loverboy’s anthem with alternate lyrics loops in my head, I hold the following open positions as of Friday’s closing bell. Please note, investments labeled with an asterisk are part of my portfolio’s dividend defensive position:
- HRL (Hormel Foods Corp)*
- O (Realty Income Corp)*
- GLPI (Gaming and Leisure Properties Inc)*
- VICI (VICI Properties Inc)*
I just returned from a bittersweet trip to Temecula Valley, but before I get into the bad news let’s start with the good stuff.
I visited Lorimar Vineyards & Winery for the first time, and I was quite impressed with the highly rated reds I sampled in the tasting room. I eagerly signed up for their top tier Symphony Club on the spot and left the tasting room with a quartet or reds. Between Lorimar and Callaway, I believe I can assemble a diverse, premier collection of red and whites for my weekly pairings.
Now for the bad stuff...
Not long after I returned home, I received word that Callaway's Meritage restaurant will only be open Friday thru Sunday going forward. While this is disappointing news, I don’t mind turning Callaway into my weekend day trip destination. I can have lunch at Meritage and then enjoy a complimentary glass of wine at the members only Vu Deck while listening to the live musicians below. I can also incorporate my bimonthly wine club pickups within that itinerary.
Now that would be a fantastic way to spend 4-5 hours on a Saturday!
You seem to be doing very well with the Trading, Bravo. And the Food Porn looks good, even tho' I'm not a Drinker, so would pass on the Vino.
ReplyDeleteClever !
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