Monday Marching

The best feeling is ending a good day on a high note, knowing your approach works when being disciplined.

Yesterday I mentioned that I do get hesitant to choose the best sector out of a given day, especially when they're the top performer over consecutive days. Such is the case for the technology sector. Based on yesterday's analysis, I decided to focus on XLK and XLY as a backup. While today was lead by the energy sector, technology was the runner up, see below:

Surely, the technology sector had a good performance and paid off on my trade today. Out of my three choices yesterday (NVDA, AVGO, EBAY), the best option was NVDA with a clean entrance.

In the above NVDA chart, I've kept the same sketches from my analysis yesterday, where we see the uptrend from May 6 - 8. I entered a contract with a strike price of $220 expiring on May 13 for $2.12 a contract at 10:00AM. As shown above, the highest price reached today was $222.30, surpassing my strike price. I sold the contract for a price of $3.15 when the strike price was reached. Overall, that is a ~49% return in a contract. A solid contract that works for me.

Now, as I said, the price did reach a high of $222.30 that could've doubled my return, but given that I had two slow weeks and are trying to recover from the blowout I had two weeks ago, I did want to be extra disciplined and collect my profits immediately.

I still can't find a good logging platform for trades, I'm inclined on keeping tract of it myself manually, but don't really want the manual piece of it. Though I recently learned that Robinhood (where I trade these options) has API permission limitations, until I find a better option, I will track manually.

In preparation for tomorrow, we know that XLE was the highest ETF performer. I don't particularly like XLE in this current climate as it changes day in and day out. Either way, rules are rules so I will prep for a two holdings within XLE and a backup should it be needed.

While I don't get ecstatic about trading XLE holdings, below are the two potential options for tomorrow if the entry is good.

PSX

PSX has had three days of uptrend, and yet, the 70 RSI mark has not been reached. If the momentum persists tomorrow, there is potential for that resistance of $177.94 to be surpassed tomorrow.

The second XLE option I'm considering is VLO

The three day uptrend has been aggressive, but the 70 RSI is untouched. I am aware that a reversal could take place tomorrow, but the momentum may stick. If the entry after the first 30-40 mins is good, I will jump in. I did consider WMB, but the stock moves by cents a day, it doesn't feel worth it at the moment to me.

The last option is a backup from is AVGO

The last few times when I studied a stock and the "entry day" was a horizontal day, I was proven that I was just early on my call. I'll monitor tomorrow's first 40 mins and decide if it's worth it.

Today felt good jumping in on this massive ocean of stocks. Showing up prepared felt good, and respecting my discipline and taking profit feels better. Let's see what story the market has for us tomorrow!