I survived the 2nd week of selling and high volatility with more wounds. My losses continued showing on book. This week booked $16K of loss with many of them incurred during the last week of blood bath and margin calls. I had some rollovers in hope of later recovery and maintaining my cash level. I have tried to deleverage but only reduced about 0.5, from above 2 to 1.67 at the of the week. I still don't have a very effective way to reduce my margin level without taking a big loss. I will explore more approaches over this long weekend.
Last Friday's gap down and sell off shown the market sentiment is still bearish. MACD and RSI are not showing over sold condition which leaves room for another leg down as many expected. We may not see much of relief until FOMC week on Sept 17. Volatility is still hanging on high 20s to low 30s.
Should or can I hang on for that long?
1. I can close everything next week and keep about $40K as what left available as of now.
2. I can keep managing my risk day by day as I am doing it now. The upside of it is that I may see a turn around soon so that I can recover more that a close out for now. The down side is that I may get wiped out with another sharp leg down or slowly get killed by a thousand cuts.
The answer: flip a coin? May be a creative thinking and execution may save me!
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