I predicted a lower day last night but didn't expect it gone this far. It was a 23 points down day for ES. One would think a budget deal is good news for the economy. But Wall street is so addicted to QE.
I didn't know the news and its impact when the day started. FT's Trader Bits didn't think it was a big factor either. I started release my puts sell order when ES testing the overnight low in the morning. I thought my S1 or S2 would hold it for today. Apparently the market sentiment turned very negative although the sell off was orderly. I got carried away with my assumption of small pull back based on the small range of last two days and the uptrend. My scalps of 1765 and 1760 went under water by mid day. My further out of money and time order were filled within the first hour too. I guess underneath I had fear of missing. I entered 11 contracts today. My margin is getting low. I get to be ready to take stop for my 1765 if the market comes with a big follow through tomorrow.
My first credit spread of index ETF IWM got crashed today too. The lesson here is that I didn't exit out yesterday when it was profitable and I knew it was a reckless order. Instead I thought I could take a chance since there were only 2 days to expiration. Now it's in the money and $130 in red. I will manage my risk or take stop before expiration.
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