March 3rd, 2020

We have been stopped out of oil. We were short – kinda. I took the signal from the futures contract, but because most of you don’t have a futures account or have accounts that don’t allow shorting, or you made the sign of the witch and sacrficed some chickens when I mentioned shorting something; we used the ETF, SCO. This symbol mimics oil like an African gray parrot, but not as annoying because when oil goes down it goes UP.

To recap: six days ago we had a stop-buy on this symbol just above resistance and were triggered in at $18.05. A protective stop was placed at $14.83, or $3.22 below. This stop was of the trailing variety. As the price rose, the stop like a sherpa followed it up and finally was anchored at a price of $22.38. The price fell back and we were stopped out at $19.16. For a gain per share of $1.11.

Per our capital allocation rules we had 10% of the portfolio invested with the stop limiting the risk to 2% of the portfolio.

Our gain was 6.66% on that trade for six days. It advanced our whole portfolio by .66%.

Our theoretical portfolio now stands at $100,875.

The other symbols have no change for us at the close, except the S&P 500 which looks like it is setting up for a further drop, but we will wait for an actual signal to act.

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