The Selling Continues 5-24-19

The selling pressure continues into the third week. The majors retested last week's lows and formed a bear flag pattern. RUT broke the low of last week and closed below it. The weekly MACDs are about to make a bearish crossing while the daily did it a while back. The trade tension is the main factor making the majors nervous.  Some people are talking about a correction of 10% or more.

Our portfolios are pressured further from the 1.2-2% drop on the long side. Luckily the most of long puts were closed out today. There are 2 RUT 1520 and 2 SPX 2830 ATM were rolled down. The majors are forming an HS pattern now. It may play out if the trade war is not eased soon. The deltas are weighing on the put side now.

Net liq is back up to 144K after transferred another 5K back to ET. Options value are at -390K. Anything below -400K is a relief for me. Leverage is at 384. The Memorial Day long weekend will give me a chance to think and learn new approaches to unwind my deep ITM positions.