As often the case bull market takes any news as good new or ignore any bad news v.s the other way around during bear market. Market reacted positively with Fed's rate hike without any attempts of sell off. RUT and SPX closed up 1.5, 0.83 % respectively. SPX is heading toward a new high above 2400. RUT closed at 1383, the top of its current balance area. It will need a little more work to get through its next balance area unless it gaps up overnight. My hypotheses of a break out played out but I still don't have a good strategy to follow the trend except the SPY long calls helped to hedge my delta.
Made 8 trades today. Sold for bear call spreads of April to make IC 2s for clients as I don't have much room to add bear calls. Three of my RUT put exit orders were filled. It reduced my exposure fees but switched margin to call side. Since the market was up so much none of my long calls were filled. I only have next two days to get my margin hedged again.
Net liq lost 15K which wiped out most of my gains of the past week. The shallow pull back may be over. I need to prepare and think of new ways to deal with the next up swing. Risk reversal, ratio hedge or calendar strategy?
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