The market was choppy during this shortened week. It finally gave in today. SPX and RUT closed down -1% and 1.35% respectively. Both of them retested yesterday's highs and failed. And both of them closed below the lows of yesterday. It looks like a current trend top is in.
Unfortunately, I wasn't able to exit any of my long put. Now the pressure switched to the downside. Our portfolios suffered big drawdowns. My net liq is barely above 120K. The leverage is above 5 for the first time in January. My excess liquidity is only 1.3K. I have to deal with it on Monday. I have spent too much money on hedging. The only way to reduce it is to reduce the size.
Assuming this may be a 5-10% pullback what should I do to reduce my risk. The previous lessons are should be remembered. One is to act early when a trend changes. Should I reverse a couple of longs to shorts? Then watch for the trend change again. I will work on my solutions over this weekend.
Friday, January 24, 2020
Friday, January 17, 2020
Back On Riding The Horse 1-17-20
I can't believe that I haven't been writing my journal for five weeks since the mid of last December. Meanwhile, the market continues raising without any meaningful pullback. Even the Iran misle strike didn't scare the bulls. The futures dropped 1.5% at night then, closed in the positive territory the next day. SPX kept making new highs in January. It closed above 3320. RUT broke out above 1700. The previous ATH is 1742. It's likely it will test that level. The January effect is in play.
I am still playing catch up game. Every week I roll up some points after the old positions expired. The Deltas are constantly in negative territory. I missed the chances of reversing my short calls back in late Nov and early Dec of last year. My net liq is barely above 130K. The leverage is above 450.
Is it too late to make the delta positive? I noted my bias and shortcoming back in Nov and Dec journals. The decision is more important than the effort. The effort will have meaning and positive results only following the right choice and decision.
I am still playing catch up game. Every week I roll up some points after the old positions expired. The Deltas are constantly in negative territory. I missed the chances of reversing my short calls back in late Nov and early Dec of last year. My net liq is barely above 130K. The leverage is above 450.
Is it too late to make the delta positive? I noted my bias and shortcoming back in Nov and Dec journals. The decision is more important than the effort. The effort will have meaning and positive results only following the right choice and decision.
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