Couldn’t wait for Monday! Although technically I am on vacation. I had a short position I entered last Friday noticing the BHP price was near Resistance level, with some tapering off of volume. I also noted that there is little to go based on my expectation models –for this instance, the economic reports for the quarter is still a few days off — so the chance of the stock price marching on is lessened at this level so decided to get in a small position to profit on the downside. I see this weakening in price by about $1 from the 1 month High reached around 37.70. I teach this low-risk entry decision in my workshops and sizing a position based on risk.
I was also browsing when I found news affirming that valuation is back in the game — the year’s best performers so far have been sold off (Tech stocks – with NASDAQ falling heavily last week). ““There may be some nervousness going into first-quarter earnings and whether that will justify these prices we’re seeing.” (Article here) And further, Dr. Roubini (famous for predicting the Housing crash in the US causing the Global Financial Crisis) notes that the US market may correct this year. (See video below) And that’s good news for people who want to get in again at choice stocks at a bargain 🙂 (I want it!!!) I got a good idea on when this year that will be and I share this in my workshop / bootcamp! So join here us and don’t miss out on the wildly profitable opportunities.
So indeed the markets opened weak today and leaving my put option BHPVP8 to simmer with the declines, while I will be off again wandering around in this lovely warm autumn in Port Macquarie, New South Wales 🙂
