The market continued to the downside despite the Thanksgiving week. There was not any cheering felt in the market. Any meaningful bounce was sold at end of the day. The majors, except Nasdaq, are very close to retesting their Oct lows. Nasdaq was already below its Oct low. The next targets will be April and Feb lows. There may be a bounce at these low points but not sure if they will hold for the longer time frame.
My portfolio is under further pressure from last week as the selloff continued. I had to wire transfer another 10K in when the majors gapped down on Tuesday. That added my total wires into 55K during the Oct selloff. I had to spend more funds to hedge since VIX stayed elevated above 20. I plan to take off 1-2 ITM positions to reduce my margin requirement and add them back when the market condition changes. It may be more effective and less expensive than spending $200-300 week on hedging. I need to not increase my ITM positions as margin relief.
Net liq is at 115K. Margin ratio is dangerously below 30%. Leverage is at 456. My main job is to keep my account afloat so I will have a chance to recover.
No comments:
Post a Comment