The week started with a pullback following the Black Friday's downturn. Both SPX and RUT hit their supporting trend lines and bounced. The uptrend is intact. The up and down moves were driven by trade talk news. The bull pulled up the market awaiting today's NFP numbers. The NFP was staler of 266K v.s. 185K expected. The majors broke out to the upside for about 1%. Noticed that the big majors closed slightly below or at the broken-down areas of Monday. Except for RUT which made a 52wk new high and closed right at last week's high. It's a bullish pasture. Like Jessie Livermore said, It's a bull market!
My net liq gave back the gains from earlier this week. It's back to 12.8K. The leverage is elevated to 4.5. With today's breakout, I was forced to adjust everyone's portfolios to avoid large delta inbalance. The lesson here is that delta should be adjusted aggressively early in a trend change. The market tend to go extream in either direction. The early adjustment will give more room to run rather than been forced to change in the later stage of the trend. Of course, there is always a chance to get it wrong. Be ready to accept it using the 80/20 rule.
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