The majors retraced from last week's run. The bad news was overwhelming. The virus spread rapidly in the world. The economy in the US is hurting badly. Over 10 million people filed unemployment in the last two weeks. The market reacted to the bad news and horrible employment numbers better than I expected. SPX and RUT gave back 7% and 11% respectively. The bulls couldn't take the majors to cross the 20 DMA. VIX is below 50 for the first time in the last 4 weeks. It's still a bear market.
My net liq is above 80K. The leverage is at 10. My hands are still tied. Couldn't reverse any long put during the up days. I didn't have any position to expire this week. I only shortened one SPX short call from 4-24 to 4-9. I hesitated to flip my long put when the majors challenging 20 DMA.
I will try to reverse one long position from SPX and RUT. I have more RUT long puts than the short calls. I also have an SPX long put with 110K exposure. That must be reduced! My assumption is the bear market is not bottomed. There may be another leg down if the virus is not contained quickly. Plus, it will take a long while for the economy to recover. The question is not if there is a session, but how bad it will be because the virus is unpredictable.
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