I swear if you’re nervous about the markets, you’re not the only one! I watched my stock “miraculously survive” the negative sentiment (of the past days), and thought it would continue to defy the world, but no! My stock Santos, (STO) finally succumbed to a fall of 27c, around medium volatility for this stock. I’ve been talking about my Stop – which has been set to 13.76 from the high of 14.06. At that point I said, I got to do something.
It’s a little bit frustrating because thinking of my system rules won’t let me do something, but I keep thinking I got to do something, (eat something, buy something! LOL)
What do you think I did? I did nothing.
I was “mixed up” about what to do. Yes, I should follow the plan. Yes, the stop will protect my profits.
But when it came down to the wire, I thought again of the NEW move that I will be doing, whether it will satisfy my System.
I was going to hedge the position instead of hitting SELL. The stock is a long-term hold for me, so I already have more than 3x of my initial Risk, I didn’t have to sell. I was thinking, of two things why I should wait on this one since it is a long-term hold, I can hold on it and put another position instead to hedge.
1. Oil – price has still gone up, Iran conflict not going away. Can you believe they are adding more (oil) into the fire saying Iran will do their “embargo” ahead of July (when EU will start their embargo!) It jumped up again today at 102 level
2. Volume – the volume is low on the Buy side, which is to be expected given the negative sentiment on the market, BUT, the number of sellers is also low, meaning, not a lot of people want to dump the stock.
3. Company Reporting – the stock STO will be releasing its Full Year Results announcement today (Feb 17), yes, I think that’s the main reason investors are holding on it. The company had done fairly well, as indicated by the Quarterly Reports. Production was good, costs are OK, Oil price has been at the higher 90’s so that bodes well for the profitability of the company. It may even announce an increased dividend (not hopeful, but this company has a track record of raising dividends year after year).
So when it came down to it, my NEW position had to follow the rules of Entry for my System.
ENTRY
– will I make 3x what I will be risking.
– will this be following the trend
With a new position on the short or hedge side, I didn’t think so! So I decided to leave this as a merry mix, be patient, wait for the business day, and just go eat something :).
This comfort food “halo-halo” or mix mix should do it!
"Halo-Halo" a popular Filipino dessert translated as "mix-mix" photo by food critic Dennis Sebastian
