Stop Order Executed

The stop order I have been talking about on my high beta energy stock executed this morning. Since the order executed the stock has proceeded to go lower by another 2%, give or take.

I'm a genius!

For ten minutes anyway until the stock rallies right back up.

As wrote earlier about this, here the trade is executed. What is next? Either the stock goes higher or lower as its next move, there is no way to know. Is the right thing to go into another high beta energy name? Should I move that money into a low beta energy name? With this trade I am now slightly underweight the group, should I stay underweight? Fortunately I don't need to decide right here right now.

This was a good stock for my clients. It probably makes sense to, at a minimum, take some beta out of the group after the run it has had. My faith in the long term demand story for oil has not changed. I will probably add a lower beta name in a couple of weeks, maybe sooner. The energy sector may sell off a little bit after the white hot run its had.

The point of these posts was to work through the thought process of entering a stop order and deciding what to do next. I have a plan about what to do. The plan may work exactly as I hope or not, it is open ended.