SRE Observations PPI Day

I monitored SRE throughout the day today to see the impact PPI had on it and the entire market.

Two things happened today, first the PPI reported indicated inflation was tense, the reported increase in February was 0.7, where the previous month was 0.5. So was the impact huge? Probably not. The report dropped at 8:30 this morning and SRE opened at 95.52 and reached a high of 96.08 around midday, similar performance to yesterday. I think it’s important to keep in mind that there may have been buyers given the ex-dividend tomorrow, ideally these buyers want the payout of $.66 per share. 

So while SRE overall performed well, there were news around 2:00PM confirming that the federal rates was not going to cut the rates due to oil pushing inflation. From here, we witness SRE going from $95.73 to a closing price of $95.04 

Again, the ex dividend is tomorrow, which means that the price will drop by $0.66 and we will have an open price of $94.38 - unless there new buyers in the morning, I don’t think it’s gonna go too far up. At least, not tomorrow. 

My original contract $95 on 3/17 is currently at $2.90 so if I wouldn’t have exited, I would’ve still be in profit but only slightly. 

I liked this trade a lot, it taught me a lot and it continues to teach me this week, even though I’m out. Let’s wait to see what happens tomorrow!