Indexes gaped up from overnight. RUT was up 1% 2 hrs after the open. SPX also was up 0.5%. It looked like a trending day with ADP reporting over 264K new jobs added by private sector in March. Then Fed Minutes released at 2pm. Normally it was not a big of deal since the rate hike was done. But the discussion of unwinding Fed's balance sheet spooked market. Market started to under pressure. RUT was leading and went into negative territory before 3pm. I thought it might retest today's low and buyers would step in as it has been. But today was different. The selling continued until closing. RUT closed down 1.2% and SPX was down 0.3%. It was a bearish engulfing reversal day that we haven't seen in a long time.
Made 12 trades today. Tried to sell some bear call spreads earlier when market was pushing up but none filled. Then I turned around to sell puts. Some got filled in late afternoon, couple of them were done after cash closing. Most of them were RUTs. I also sold an ratio hedges in puts. I will start to work on selling SPX as there are more available expiry dates.
Net liq popped 13K. I may be able to get one RUT bear call closed this week. Then it will be a real relief for me. Margin is still on the call side for now. The risk is to the down side now. However Friday's job report could be a strong shot to turn market around. At least we get some two way actions now.
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