SRE Ex-Dividend & Thoughts

I exited my SRE contract two days ago, right before yesterday's PPI report and today's ex-dividend date.

Today's low was $93.68 which was interesting, we had not seen this low since 3/13. It made sense that this happened, two days of heavy pull in price with PPI yesterday and the feds not cutting the rates, today the ex-dividend. However, SRE recovered through the day and closed at $95.25, which was a decent recovery from the morning low.

SRE might go back up again, the reason being that it is a strong holding within XLU, and this has been backed by big banks. JP Morgan raised the target price to $106, this is significant as SRE is currently at $95. Meaning, if the big banks are convinced that SRE is undervalued, we can expect SRE to meet that target in two weeks. I say this because RSI has proved to remain healthy, the resistance is the new support, and there are no news drops or ex-dividend dates coming up.

Again, this was my favorite trade so far this year. It taught me while I was in the contract and after I left the contract. It made me understand sectors differently. SRE allowed me finally understand that I'm not supposed to hold a contract for an entire month. I can avoid a bad exit by creating a good entry and having a high ROI in a matter of 5 days max.

So my next goals are - find a good set up that works, similar to this past trade. At the same time, while enhancing the current entry. Not waiting the 30 days on a contract.

Tomorrow I'll visit different sectors and compare holdings to identify strong holdings within a sector that is not affected by its entire sector. New ways ahead, exciting times