Just Watching for Now

I’ve been sitting back for a few days just watching to find my right entry point for my next trades.  I got in too early on SLFY and knew better.  My whole theory was that it would stay between 14 and 17.50 and sure enough after I got in a few days ago it climbed up above 17.  I entered another limit to sell two more June 17.50 puts, but they haven’t hit yet.  I still think it isn’t going too far north.

After profiting on MON earlier this month I’ve been trying to find the right entry point, but wanted it below 115 at a maximum.  I entered trade alerts to text me when it got above 120 and below 115.  The morning after I entered those I saw MON climb above 120 for a few days.  I debated getting in then since I thought it might have legs, but stayed patient.  MON broke below 115 this morning.  A good entry point might be near for selling OTM naked puts.  Even the June 100 strike could be worth the risk.

In the end, I’m waiting to see what the Fed does and how the Street reacts to it.  I’m half hoping for no rate cut this time around.  We might be at the point where we need to see if the previous cuts can do their job, while still leaving some ammo in our guns.  Inflation is always a concern obviously and a stop in rate cuts would strengthen the dollar which would lower gas prices and slow inflationary pressures brought on by the rise in gasoline prices.  That’s the up side to no more cuts.  I don’t think the up side to another 25 basis point cut has a lot for us to get excited about.

I have a good percentage of my account available to trade right now and at the same time don’t feel the need to trade for the sake of trading.  I’d rather wait to see what the numbers will be this week and get in when there is less risk, albeit with less reward.