The markets gave back some ground on Tuesday as energy and techs declined. On the surface the magnitude of the declines appeared small but there were some serious losses.
Unfortunately some of those declines nearly wiped out our existing portfolio. The silver implosion on Monday knocked us out of the SLV position for a 95-cent loss.
The drop in Internet stocks today knocked us out of SOHU when the stock lost nearly $9 for the day. That was really painful with a -$1.51 loss on the option.
The earnings misses by Alpha Natural (ANR) and Massey Energy (MEE) knocked $4.49 off Joy Global and that cost us another -$1.54.
Last but not least Range Resources declined with the energy sector and stopped us out by 20-cents at the low of the day for another 90-cent loss.
This was the worst week so far since May of 2010 for Option Writer. Needless to say I am not buying the dip tonight. We need to wait and see if the "Sell in May" crowd is going to appear or will the markets recover from this minor bout of weakness and move higher.
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