Futures popped early last night following a small down day for no apparent reason. Market started pushing up right off gate. I thought it would be a turn around Tuesday to the upside. It turned out that I was wrong again. It turned out to be a decisive break down. First I thought RUT would have had a 1% down day, then 1.5% by lunch. 2% was the max to me. It ended closing at 2.7% down. SPX closed down -1.2%, the 1st time in about 5 month. Market can do anything for no apparent reason.
Made 20 trades today. Many of them were filled in the first 2 hours of market open. Turned out to be too early. Especially the hedges.above RUT 1300 puts. I noticed many of my orders were influenced by my fear of missing instead of measuring market levels. Since it has been so long without a volatile market I kept use my recent experience of buyers stepped in on any minor pull backs. I need to have a more detailed daily process and 2-3 scenarios for each day, Like Trader71's hypo 1-3. Despite of the shortcomings I did maintain my calmness and held back on placing orders after lunch time. I didn't go in with full force to sell puts.
It was a big relief for my portfolio. Net liq is up 23K. Margin ratio is back to safe level. Leverage is below 100, the first time since the election. I was able to pay another 5K back to ET. Now it's time to pay attention to the risk of my long puts.
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