All things were moving nicely for the overall market heading into Trump’s speech this morning. However, his comments regarding drug prices sent the entire biotech industry lower. Drug prices have been ripe to get after by politicians and rightfully so. It is Trump’s turn after Hillary Clinton and Bernie Sanders had their say earlier this year. The market went lower, but the headlines describing the experience as catastrophic was FAR, very far from the truth. It is interesting to see how one could describe such a day in such a dire manner. To each his own. Overall, we are still dealing with a market waiting on a catalyst. Bank earnings are up and perhaps earnings will be what propels this market forward again. The next 4 weeks will certainly set the tone for the market moving forward. Stay disciplined and stick with the program.
We continue to plug along trim and trailing our current holdings making way for new signals. No need to fall in love with a stock and hang on to dear life. This market simply isn’t supportive of concentrated positions. It is unfortunate as it is much easier dealing with five stocks rather than 50! Sometimes more if you can believe. They are all one trade of thousands and one signal is not more special than another. We simply execute our trading plan and adhere to a time-tested money management protocol. Many new traders will forget the money management or risk side of the equation and find themselves in a hole rather quickly. We rather you avoid the headache and make sure you have proper position sizes and exits. Do not get caught with poor position sizes and god forbid without a plan when to exit.
We’ll continue to produce gains and squeeze as much out of this market as we can. Trades will not be forced, nor will we ignore our trading rules. Too many find out the hard way. Enjoy Thursday’s market.
