Past Week & Week Ahead

I jumped on SRE on Tuesday this past week. At the time, it seemed like SRE had just recovered from an overbought position, and I thought the drawback was over. This wasn't the case as we saw it drop to $92 March 12 at opening. Even then, I felt good about the trade because we didn't reach $91.77 which is the original support price.

In the above, I've highlighted what I mentioned at the beginning, I now want to move on to the recovery that took place in the second half of the week. Friday the 13th was the best day of the trade. From the beginning of the day, we saw a run take place, which was for the most part maintained throughout the day. It's safe to say that the support on Friday was $95.00 and although it was tested slightly, it can potentially be the new support this week. Since I mentioned that spike in price on Friday at the beginning of the day, we can see this more evidently when the RSI reached the overbought mark for the first hour of the day. If we look at closing time, we see that RSI regained stability by reaching mid forties, this gives us room for this coming week.

I've discussed that not only is the current geopolitical climate having an impact in the entire market, but there is also what I mentioned in the last post, the loan notes SRE declared. So the geopolitics affect SRE positively when investors go hide to utilities. In addition, this past week proved to be one of the most "stable" of the top ten holdings within XLU. The loan notes also created a positive impact once they were confirmed.

Now, on to the upcoming week. Tomorrow is Monday, I'm not too sure on what the market and the sector will look like. Our current times make the market be a rollercoaster. However, I do have in mind that the dividend is coming up on March 19, which means that on that day, the price will drop by $.66 at opening. It would take all the investors and big money to drive this price up and recover from the ex-dividend.

At the same, the PPI is being reported on March 18 (Wednesday) this gives us Monday and Tuesday as two days to run it up and take profit if we see fit. Is it feasible? yes I think so. One of SRE directors purchased 1,000 shares on March 12, which may have also contributed to the spike we saw on March 13. Friday's performance can possibly influence volume, plus geopolitics. In addition, I do think buyers might run it up with the dividend date and PPI coming up. I do believe that by the end of March 17, we may see many taking profit. If I see fit, I might do the same.

I've set stop loss and limit order. I know what my break-even price is, we've already reached strike price. Monday and Tuesday sound limitless. Depending on how the next two days go, I will make a decision before closing day on Tuesday. I also know I need to keep track of monthly and quarterly reports as well as ex dividend dates before opening a contract. Not sure which is best, to enter prior to or post ex dividend dates, I'll investigate and share tomorrow. Otherwise, excited for this week ahead, let's keep learning and growing.