The majors formed a bearish engulfing candle on Monday. The tide changed to the downside. This is the first down week of the majors in 2019. Today's NFP was 20K vs 180K expected. It was a big disappointment. The sentiment has changed to somewhat cautious. However, the majors didn't drop much during the early session. They even staged a recover before closing. Not sure if this pullback is so shallow.
I acted fairly early to reverse our long puts based on Delta. It's an improvement from these reactive actions earlier this year. Today's reversal didn't work out well. I thought the poor NFP number could cause a big selloff but it didn't happen. Late I guessed the reason may be that the bad NFP could make Fed stop rate hikes. Either way, I need to be more factor based.
Net liq is about the same level of 115K. Leverage is above 5. Only the quick risk reversal saved me from this selloff. I still don't have a workable plan to quickly deleverage my portfolio except taking big losses.
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