It was a wild week for the market. SPX touched 2800 after the trade truce in G 20 on Monday. Then a 3-4% selloff followed the next day. The majors have booked two of 2-3% down days in a week. RUT is closed below Nov's low. SPX is parked right at the low of the last month. It's a pretty bearish picture. Fed's dovish talk and the trade war truce didn't save the market. Could this retest be successful? The next support level is the Feb lows.
Had a hairy moment on Wednesday night after the futures opened gap down. I had a margin call that evening. I came up with an idea to trade the SPX to roll a couple of my positions during the Europen open at 3 AM. It could save a client's account and mine. I made it with a little technical glitch. Although it was a wash on Thursday, our accounts stood for today's 2% selloff. Three of my ITM bear calls are off the book today. It recovered about $30K for the portfolio nicely. That should allow me to reverse more to the downside should the market continue to sell off. I need to watch out not adding more positions on each side.
My portfolio is still shaky. Net liq is at 114K after paid 5K back to ET. The margin ratio is at 38%. Leverage is 4.7. The 2 DTE system failed on Thursday during the selloff. It was designed to withstand 1.5% movement in 1 day. Then SPX dropped 3% in one day. Every time I get hit when I am overconfident and disobey my rules. I didn't want to trade it in my account due to the limited buying power. I didn't hold my disciplines.
My work for next week is continuing to deleverage. I haven't collected many premiums and spend part of the collection on hedging each week. I found that reversal can also help reduce margins. But need to watch out for adding positions on the opposite side.
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