After a historical gain of April, the majors started selling off into May. SPX and RUT were down 2.8 and 3.8% respectively on Friday following the previous down day. They both hit their respected Fib levels of 62.8 and 50%. The economic news is pretty bad. The GDP is -4.8% for the first quarter. Unemployment claims for last week are 3.8 million v.s. 3.5 million expected. FOMC kept the rate unchanged and committed to supporting the economy with any means. The majors started dropping the day after the FOMC meeting with the technical levels reached. I think the sentiment and the direction of the majors are changing the negative again.
My net liq closed at 99.6K after stayed above 100K for a couple of days. The leverage is at 55. I was able to roll out a couple of deep ITM positions in both SPX and RUT. Looking at some of my pending orders I am glad I didn't flip my long puts to short calls during the surge last month.
I started to trade some leveraged ETFs last week. I didn't get the directions right most of the time so far. I think I may have to find some 2x leveraged ETF for short term swings and only day trade 3x ETFs. That will reduce my risks. I will joint an options trade service this weekend. I need to fix the Twitter SMS service.
My main question is that should I stay in the trading business? Getting a job is unlikely with the current economical condition. Is starting a new business an option? If so, what kind of business?
Think deep in both internal and external, pros, and cons of my next move.
No comments:
Post a Comment