The expected break out in SPX happened today after the reported inflation rate at 1% below expected 2%. Instead of a gap up market slowly grind up all day long until the last 15 minutes of the cash market. SPX made high of 2463 and closed at ATH of 2459. RUT also moved to the top of its current balance area but gave back more than a half of its gains at closing. But both SPX and RUT closed quite bullish. Would the new highs follow the previous pattern of quickly fall back? We will see.
Made 10 trades today. Sold couple late August bear call spreads of SPX for clients on this new high. I take profit on a SPY call of 245 while it's moved ITM. The most difficult one was to roll out SPX 2265 C in ET. As the price grind up in the afternoon I had to change my price from credit to debit. After 3:30pm I finally paid $80 for each contract to move out a week. I had to use most of the credit received from last week's rollover to cover it. It's a matter of avoiding get assigned. Guess I have to continue to take a small cut until the market turns.
Net liq survived today's surge with a 2.4K damage. Luckily RUT wasn't the main force. It may catch up next week. Margin ratio is OK for this weekend after adding a RUT call and IWM ratio hedge.
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