The majors surged more than 10% in this shortened week after last week's pullback. The possible topping of the COVID-19 could have boosted the sentiment. The surge could be more technical patterns playing out, such as Fib and ABC. The 6.6 million unemployment claim was offset by FED's another $2.2 trillion programs. So far this surge could be still a bear rally. But it's impressive of a 20% bounce from the March lows.
My net liq is above 90K. A nice 1.2K recovery. The leverage is at 6.45. I was pretty bearish at the end of last week when SPX tried to break the 20 MA twice and failed. I was still single-minded expecting a breakdown. I placed ES puts in mid of last week. I committed over $5K and being greedy of doubling my money. I failed to prepare in case of the market against my thesis. My bad habit of not taking hard stops causes me the most of my puts. Hope is not a strategy. Also, I had to roll my SPX 2640C to next week which caused me another $2600 without reducing any point yesterday. The two bad trades prevented my N.L to back to 100K.
I will continue to reduce my stocks if the market recovers more nest week. The majors retraced 50% so far. We may see a stall or a leg down soon. I will try to reverse a long put to a short call in RUT to balance my long and short.
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