The post Christmas market shown attempts of moving up on the first day. Buyers stepped up on very small pull back until the cash closing. There was a small sell off after RTH. Every one is eyeing on Dow 20K before New Year. NQ made another new high today. It appears that all major indexes are aiming a round number before the new year. Dow 20K, SPX 2300, NASDAQ 5000 and RUT 1400. That would make a big headline and boost market sentiment. More people will be sucked in. I will be forced to cut off some positions if that's the case. My theses of two days up and two days down for the last four trading days may still play out.
Made 9 trades today. Most of them were hedging calls and exit puts. One was rollover to lock in some profit and up 5 points reduced a little margin. I plan to hold till the last day for these near the money positions expiring this week. I will continue to monitor and hedge my risk as my priority.
Risk profile eroded some as the market moved up. Net liq is at 133K recovered from a bigger loss earlier. Margin ratio is at 43% comparing with Initial Margin which is what the broker uses. I will use it instead of Net liq from now on in the meantime watching net liq as a separate factor.
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