S&P 500 Fails 20. On All Important 50

The S&P 500 failed the 20 Thursday and my stop losses were triggered. I bought call options on the 50 day moving average Friday to take advantage of the pullback without having to risk much capital ($500 vs $5,000.) There was a disappointing jobs number on Friday which lead to the sell off. However, the market rallied back at the end of the day signaling that investors were not too worried about the data. I still feel that the market is losing momentum here and will use the old adage “sell in May and go away” as an excuse to keep on selling. So, I have half of my money in cash to stay protected until the smoke clears.

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