Now's Not the Time to Blink

Politics and markets do not make good bedfellows. While much of what politicians say is only lip service, there's risk to your trading positions with every word (though it's better if it happens on a Friday, given the rapid increase in trading of weekly options).

What started out looking like a green day turned red in a hurry. When this happens and you have weekly options suddenly moving in your favor, don't blink. If you have profits, reduce your risk. It wasn't a technical break. It wasn't a break based on poor data. It was a political break. It's a gift. That's exactly what I did, and why I posted in Columnist Conversation that I was taking my original risk capital and a small amount of profits in my SPDR S&P 500 (SPY) trade. We've all heard that you can't trust politicians. I'd add you can't trust a big initial market move based on the words of politicians....146 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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