My Trading Diary
The S&P 500 keeps inching higher. This morning is the longest we’ve held above 3k and so far everything still looks good. Some traders were selling 3k because that was “too far”, but they are in the minority and that profit-taking was fleeting. Instead, we keep testing it and today could be the day we finally close above it.
Not a lot to do with my position. I’m in the market and content riding this slow move higher. No reason to sell, so I’m sticking with it.
My Trading Plan
Most Likely Next Move: Slow grind higher continues. If we don’t close above 3k today, then it will come early next week.
My Trading Plan: Stick with my position. No reason to sell defensively and still too early to take profits.
If I’m Wrong: All of the buyers are already in the market and there is no one left to buy. While that is always a possibility when at the highs, there has been enough fear and uncertainty over the last few months that I think there are still a lot of people stuck outside and looking to get back in. But if we see a series of lower-highs develop, then I will be forced to reconsider my outlook.
Jani Ziedins (pronounced Ya-nee) is a full-time investor and writer who has successfully traded stocks and options for more than a decade. He earned a B.S. in Mechanical Engineering from the Colorado School of Mines and an MBA and M.S. Marketing from the University of Colorado Denver. His prior professional experience includes manufacturing engineering at Fortune 500 companies, structural engineering, small business consultant, collegiate instructor, and managing investment real estate. He is now fortunate enough to trade full-time from home, affording him the luxury of spending extra time with his wife and two young children.