No Panic Here

Some folks may call what happened today in the market a tornado. I call it a "weather anomaly". Two sectors are getting crushed - financials and consumer discretionary. A third sector is trading down in sympathy - commodities (despite gold and oil). But the third sector will recover soon. The first two need a wide berth. They, like housing, are in the part of the economy that are basically out of favor by the market.

Fortunately, I am not invested in any of those sectors. Why I think that today was a weather anomaly is that sectors like technology held up (and were in fact UP until the last hour of trading). Traders are shooting down the stocks that deserve to be dead, but rewarding growth. There is no panic out there.

So, for me, today was a busy day! I covered my TIE puts for a small profit. The market gave me a chance to cover after setting up a trade that was too early. The thesis for the puts are still in place, but I am looking for a better entry point.

I also sold my NVDA calls when NVDA took off on a 2:30 pm rally against the tape. The market again allowed me to cover for a scalp on an options position that I averaged down previously. NVDA is a great stock, but I have three weeks left in the stock before I rotate out of my long position and there are no events to hold my calls for.

I also sold CYT about the same time to raise cash. I admit defeat. I thought that CYT would be a better mover than it was this week. I am too young and aggressive for watching paint dry and settled for a tiny loss to have the cash available to pour money into GRMN and ROCM.

GRMN may have bottomed today and I bought into calls looking for a bounce. I also injected another ten thousand shares into my ROCM position expecting a move up going into earnings on November 15th.

Happy twister chasing tomorrow.