Archive Category: Wednesday Windfalls Updates

It’s a slow week for us since the markets were closed on Monday for President’s Day. I hope you had the chance to enjoy some extra downtime! As promised, today I’m reviewing the result of the trades we made on Monday, February 13. Unfortunately, the net result of those trades wasn’t good … but there are lessons to learn, so I always try to appreciate that as something of a silver lining. Let’s explore how leverage and position sizing are the keys to success with Wednesday Windfalls.

Congratulations, my friends! We’ve gone “two for two,” with nice double-digit wins both this week and last. None of our three individual trades knocked it out of the park this week. But that’s OK because we didn’t suffer any meaningful individual trade losses, either. Our worst-performing position was the call options we bought on PG&E Corp. (NYSE: PCG), which we exited for a mere 3.6% loss — de minimis. Meanwhile, shares of both Ford Motor Co. (NYSE: F) and Halliburton Co. (NYSE: HAL) traded about 3% higher between our Monday afternoon entry and our Wednesday afternoon exit.

We took advantage of favorable entry points on Monday, thanks to: Uncertainty over what the Federal Reserve was going to say on Wednesday. (In case you missed it: The central bank raised interest rates by another quarter point.) And a fall in the markets early Monday.

“Pep talk” time… The calendar year is arbitrary. Still, we tend to ascribe some importance to the transition from one year that’s “in the books,” to the next, which can feel like a blank slate. So it’s admittedly a bummer that we’re zero-for-two so far on our weekly Wednesday Windfalls trades in 2023. And it didn’t help much that we had to skip two weeks thanks to Monday holidays. Sure, acknowledge the disappointment … that’s human.

The market is closed for Martin Luther King Jr. Day. So we have no new trade signals this morning.