Market started to show weakness not too long after open as the 10 yr bond rate moved up overnight. The push down was slow but persistent. Both SPX and RUT broke their recent range lows and crossed 1% down mark. Some late buyers got crushed in the morning. By 11 am dip buyers stepped in. Both indexes recovered a little more than a half of the losses. The house will vote on budget resolution tomorrow. It's likely to pass and give the market a boost. GOP also plans to release the budge bill by Nov 1st. I need to buy more calls to prepare for a possible surge. Today's pull back may be a clear deck action for another push up.
Made 19 trades today. Sold some SPX and RUT bull puts for late Nov and early Dec during the push down in the morning. My assessment of a later bounce was correct. Also roll out some small cars to next week expecting the heavy earning week and tax bills to boost the market. Sold some put ratio spreads to hedge my downside since margin is on puts now.
Net liq didn't change much at all with near a half percent down to my surprise. Margin ratio is at 40%. I will have to hedge it before the weekend.
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