Pundits called this afternoon's sell-off a "disappointment trade" in that investors were disappointed that the market couldn't hold gains after great earning's announcements this morning. Whatever. I just call it profit taking and I bought the dip. First, I sold UA. It crossed that support line that I mentioned repeatedly and I needed to buck-up the discipline and follow my rules. It goes back on my watch list for as a buy when it bottoms. I sold it at $57.80 and used the cash to re-buy AAPL Nov calls. This time it was at a strike price of $175.00.
The DJI went negative more than 120 points (a swing of over 200 points) at one point and AAPL, PCP, and NVDA were still up for the day (good stocks swim against the tide). When AAPL reluctantly went negative for a moment, I pounced on those calls. At close, this looks like it was a good move. Time will tell.
The financials have been getting hammered, but investors are primarily focused on punishing only that sector.
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