A Volatile Week Ended With New Highs 11-13-20

 The election and vaccine news boosted the majors to all-time highs except for NASDAQ on Monday. Then, they were quickly faded. It was a tag war for the rest of the week. The majors other than NASDAQ closed at new highs on Friday. It looks like the year-end rally is underway. There may be one more pullback in November if the seasonal pattern holds true. 

My net liq is at 102K, hanging on a thread. The leverage is at 441. The combined delta is near zero after I reversed the SPX 2820C to two 3800P. It was a timely trade. But I may not gain or lose much in either direction of the market moves. I will continue to lean toward the long side by adjusting the ITM puts. I finally got some relief for my ET disaster. One of the two long puts should expire worthless on Monday. If that's the case I will have some extra BP to split and roll the SPX 3820 put. I must be really careful to unwind the position. 

I didn't make much progress in new trading systems. I spent most of my time managing my current positions this week. I traded a couple index ETF on the sharp selloff yesterday. The result is mixed so far. 

A Surprising Market Reaction To The Election 11-6-20

 It was a highly anticipated volatile event for this election. I had tried to build some hedges for the downside through VIX products and debit spreads of index ETFs. I only bought some call spreads in the small-caps since my delta was very negative. As it often happens that my bets of the market directions are turned out to be wrong. The futures rallied on the election night even without a clear winner. They kept gaping up for the next two days. I still feel this rally could be a bull trap. SPX and NASDAQ are reaching their Oct breakdown areas. But RUT broke out its Oct high and closed on top of the area. This is a divergence to watch. Could the small-cap be the leading indicator again? For the others, the first attempt may not work out. The seasonal year-end rally could be a force to push the market higher. 

My netliq stayed at 111K. The leverage notched a little higher to 378. It was the first positive $26K in realized gains for the last 4 weeks in IB. All of my RUT long puts were expired worthless before I reversed the RUT 1350C to 1960 long put in June 2021. I will gradually bring it lower. I added two SPX short term LP for recovery knowing the 3 of the old LP would be expired worthless. I may not be able to reverse one of my two SPX SC since they are so deep ITM and SPX jumped up 130 points this week alone. My delta is still in negative territory. The ET account is a different story. I am forced to reverse the 3110 short call to the Nov 19, 3830 long put. I hope that my 3550 LP will be expired or exited by then to release some margin for me to roll over the 3830. This is the most costly mistake I have made in my personal account. 

I haven't traded with Shadow Trader for most of this week since he is standing down for the election event. I am still thinking to change my trading strategy. Otherwise, I will get the same result with the same mindset and strategy.