A Week Of Down Turn 9-27-19

The majors are under pressure. On top of the trade war uncertainty, the impeachment inquiry added more pressure to the market. Any related news and rumors could move the market up and down. MACD is pointing more downside movement.

I wasn't quick enough to add more ETF positions to the downside. I had thoughts to buy downside hedges but no clear plan. I need to map out my "when and then" plan in the morning and execute it without much emotion and "what if" hesitation. I will edit my "Rules of Leverage Reduction" to make it more practical and clear over the weekend.

Net liq is close to 150K after taking out 2500 for my regular and additional withdraws. The leverage is at 370, slightly better than last week. I was able to reduce two small RUT and one SPX puts. But add one SPX put back with my old, bad habit of risk high for a small gain. I made my first swap between RUT call and SPX put. It's workable despite a bad timing early this week. SPX may be easier to exit in percentage terms, but not in margin requirement.

A Week of Surge 9-13-19

The majors followed through from last week's upswings. SPX is back into the 3000 territories and almost made another ATH. RUT gained 5% in the week. It's the most advanced in the majors. There is a clear change in buying preference. The small caps and values are in favor now. The FANG is not leading this time. What's the implication for my trading?  Is RUT going to catch up and break out the box this time?

My portfolio is hit hard by the surge of RUT and SPX. The delta was pushed deep into negative areas. I had to add more long puts attempting to left delta up. I need to remember the lessons of last May and August. Try not to be too aggressive and get caught in a sudden turn. Next week's FOMC is a major event I need to stay clear off. The market sentiment and wave are more important.

Net liq is barely above 130K. I was able to pay another 5K back to ET early this week. Leverage is back above 4. I am still thinking about and searching for better ways to unwind our positions.

Has The Majors Turned? 9-6-19

The majors turned positive in the first week of September. The pattern is so far similar to the price movement of May and June of this year. SPX is less than 2% from the all-time high. As usual, the small caps are legging. RTY has just moved into its VA low while ES closed at the high of its VA. The market is in a tricky position now. Will the bad reputation of September play out again?

My net liq is back above 150K again. I couldn't adjust my delta quick enough when the SPX turned on Wednesday. Leverage is at 3.6 which is much better than above 4 last week. I am breathing easier this week.

I have been watching my position size closely. In principle that I won't add a new position unless there is an old position expired. I will use the weekend to calculate my theory of switching RUT to SPX. How much would it impact the margin and funds for such switches? I really need to think outside of the box now. Otherwise, there is no hope of getting out of the bad satiation.