Such a quiet trading day... yes, I am not kidding. I have not much to say today. Just 2 trades. Sold 1/3 of PTN and booked about 25% gain in two days. Added ASUR on a huge pullback. It looks as good as couple of days ago when crazy crowd was buying it for 44 cents. We added ASUR for just 0.3244. And one new position TMNG that showed resilience to today's HUGE sell off.
As I was saying yesterday and a day before, SPY spikes higher were nothing but market makers manipulation and end of the month window dressing. Everybody was selling today and I think today's S&P drop was is the biggest for many months. -2.6% Bulls were scared today. As for Pennystocks portfolio, I can tell you, we were green till noon. Yes, about +0.5% up! And only later the day, negative actions caught up penny symbols. We lost -0.6% or -0.7%. I don't want to tell you exact number now, we'll see it tomorrow morning on the covestor chart. My trading data is not corresponding well with covestor. Yesterday which was much better for me than a day before and I said we are up +0.9%, in fact covestor shows different picture. Up, but only +0.4%. I think covestor return calculation doesn't account for cash position, some other things, so it's not very correct. Anyway, we use their platform and lets stick to whatever results they display, whether they are better or worse. In the end of the day, relative performance between S&P and Pennystocks should be close enough.
So, today was under SDS symbol leadership. We were 4 times better than S&P just because of SDS airbag protection. Today everybody would agree with me how good is to have SDS in the portfolio, but what about good days? Why do we need this hedging. The thing is that penny stocks move up HIGH and FAST and if you think you can perfectly time entry and exit, you are mistaken. With 140 positions in the portfolio you need a complex trading "lab" to do screening every single minute. I can't afford this, and honestly I don't want to. SDS is a very good compromise, much better than cash. You are protected in bad days and will never miss a nice and strong action in good days. Whatever we lose is our pay for flexibility.
By the way, don't forget to sell calls on SDS when this market sell off is over. (options are not covered by our regular Pennystocks strategy). Selling calls on SDS will help you to compensate some X-leverage ETF decay, SDS is exposed to. I don't know how deep down we are going to go, but 50 , 55 or 60 strike calls for November or December could be a good option to get more return (which we again won't see in covestor chart)
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