The Trick and Track Fool Market 6-19-2020

The majors closed in their positive territory with wild moves this week. The market recovered about 50% of last week's loss. The majors started a major reversing up on Monday. SPX couldn't close the gap from last Thursday while RUT and QQQ did. But the majors reversed down on the quadruple witch Friday, especially the futures in the after hour. SPX is still above its 200 MA but RUT failed to take it. QQQ stayed above the ATH range. These are conflicting info for next week. We are likely to gap down on Sunday night based on Friday's closing if there is no big positive news. The trick and track crew may surprise us again. 

My net liq is at 117K after borrowing another 15K from ET to help to roll my positions. I plan to return 5K back to ET this week. I closed my SPX 3310 long put for about 17K since it would cost 4K to roll with only 10 point gain. I plan to recover it with some smaller positions. I may try to close one RUT to reduce my risk exposure. 

My short term breakout option trading booked a small loss due to my lack of taking stops firmly. This program identifies breakout stocks with good levels. But it's just too fast to catch for me or I may not have studied it hard enough. I may look for a replacement at a slower pace. The Shadow Trader and VTS are fairly conservative.

The Bear Came Out 6-12-20

It was a wild week. The sentiment was high earlier this week before the FOMC announcement on Wednesday. On Thursday the majors had the biggest selloff day since March. SPX and RUT were down 65.8 and 7.6% respectively. This Friday is an inside day while bulls and bears played a tug of war. The day ended in the positive territory but lower than the open. VIX is back above 35. It appears that the rally is stalled near the Feb breakdown point. 

My net liq is down to 91K. The leverage is near 5.5. I couldn't do much rolling when the net liq is below 100K. Luckily I don't have any position expiring this week. It will be critical and difficult for me next week if the net liq is still below 100K. 

I am learning more about direct trading in my other accounts. I am taking stops more forcefully. I feel more comfortable about it now, especially after listening to Larry William's book. I made a few more wins with the Options Insight program. I am still having fear of losing. I only used one contract at each time and don't let my winning trade run. I will work on it next week. I also signed up with the VTS program. It's a VIX based swing trading system. It seems I am more comfortable with these slower-paced trades.  

Are We There Yet? 6-5-20

It's a big up week for the majors as the third consecutive weekly gains. SPX closed at 3194 after briefly breached 3200. It's only about 60 points from the big breakdown week back at the end of February. RUT has been behind SPX and NQ. It also closed at 1507, above its 200 DMA today after the big boost of NFP No. The majors may be closer to their destination in the upside, or not? NASDAQ made ATH. Is it a clue for the rest? 

My net liq is at 95.8K after the big 2.6%, 3.8% pop today. My portfolio is too vulnerable for a big move in either direction. The leverage jumped to 5.65. Luckily I exited 3 long puts today. I may benefit if the market takes a breath next week. 

I am still struggling with my disciplinary issue. I didn't obey the stop rules and the accounts suffered. My Elite Option service lost money again because I didn't follow the stop loss calls. I have to stick to the stop-loss rules or I won't be able to stay in this business. My old thinking pattern comes in every time when I need to stop loss in a position. I must recognize and correct this bad habit.