We warned the sector was due for a break in the uptrend, and suggested we’d have a better chance to buy technology stocks in the weeks ahead.<\/p>\n
It took about two weeks, but the sector finally snapped back. Here’s the updated chart…<\/p>\n
![\"Chart\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202002\/20200226-jmu-01_xdr567.png\")
<\/div>\nXLK has come all the way back down to its 50-day moving average line. And, all the momentum indicators have returned to “neutral” territory. Traders who were looking to put money into
\ntechnology stocks two weeks ago have a much better chance to do so today.<\/p>\n
Is the selling over? Has the tech sector hit bottom?<\/p>\n
Frankly, I don’t know. Conditions were so overextended and so overbought two weeks ago that maybe the rubber-band needs to stretch some in the other direction.<\/p>\n
There is no doubt, though, there’s a lot less risk to buying stocks in “neutral” territory rather than chasing them higher into overbought conditions.<\/p>\n
It is hard – really hard, sometimes – to be patient and wait for a lower-risk setup. It is all the more difficult when it seems like the stock market goes up every day – like it did for the first three weeks of February – and when the financial television talking heads are encouraging folks to get on board… or else risk missing the move.<\/p>\n
But, as we saw in late January, and we saw again on Monday…<\/p>\n
The rubber-band always snaps back.<\/p>\n
Best regards and good trading,<\/p>\n
![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\n
Jeff Clark<\/p>\n
Reader Mailbag<\/strong><\/h2>\nToday we hear from Ryan, a Jeff Clark Trader<\/em> subscriber who has a question about options contracts…<\/p>\n\nThank you for your amazing trader service and keeping the price so low to allow newbies to learn to trade options before moving on to the more expensive services.<\/p>\n
I strongly agree with your advice on selling half my position on a 100% gain – in my case since I’m new, I’m only buying a single option. Is your advice relevant in this scenario? I’m unsure on how to sell half of one option contract.<\/p>\n
Your reply is greatly appreciated. Thank You. Be Well.<\/p>\n
– Ryan<\/strong><\/p>\n<\/blockquote>\nJeff’s note<\/strong>: Thank you for the kind comment Ryan. We’re glad you’re enjoying the service.<\/p>\nThe straightforward answer is no… There is currently no way to sell half of a single option contract.<\/p>\n
So, if you’re new to options and are trading one contract at a time, and I recommend you sell half of your position at a 100% gain, you should just go ahead and sell your full position and take the 100% gain.<\/p>\n
Then, with the gains from that trade, you can look to potentially trade higher amounts of option contracts in the future.<\/p>\n
Hope that helps, and thank you again for being a subscriber.<\/p>\n
To learn more about how you can secure a 100% gain, click here to learn about my introductory options advisory, Jeff Clark Trader<\/em><\/a>.<\/p>\nAt just $19 per year, there’s no better way to learn about the lucrative world of options trading… And in a way that’s accessible to the average investor. Just click here to learn more<\/a>.<\/p>\n
\nThank you for your amazing trader service and keeping the price so low to allow newbies to learn to trade options before moving on to the more expensive services.<\/p>\n
I strongly agree with your advice on selling half my position on a 100% gain – in my case since I’m new, I’m only buying a single option. Is your advice relevant in this scenario? I’m unsure on how to sell half of one option contract.<\/p>\n
Your reply is greatly appreciated. Thank You. Be Well.<\/p>\n
– Ryan<\/strong><\/p>\n<\/blockquote>\n
Jeff’s note<\/strong>: Thank you for the kind comment Ryan. We’re glad you’re enjoying the service.<\/p>\n
The straightforward answer is no… There is currently no way to sell half of a single option contract.<\/p>\n
So, if you’re new to options and are trading one contract at a time, and I recommend you sell half of your position at a 100% gain, you should just go ahead and sell your full position and take the 100% gain.<\/p>\n
Then, with the gains from that trade, you can look to potentially trade higher amounts of option contracts in the future.<\/p>\n
Hope that helps, and thank you again for being a subscriber.<\/p>\n
To learn more about how you can secure a 100% gain, click here to learn about my introductory options advisory, Jeff Clark Trader<\/em><\/a>.<\/p>\n
At just $19 per year, there’s no better way to learn about the lucrative world of options trading… And in a way that’s accessible to the average investor. Just click here to learn more<\/a>.<\/p>\n