The Bulls Are Back 12-18-20

 The seasonal patterns worked this time again. The bulls come back strong. All of them majors made ATHs this week. RUT made its 7th consecutive weekly gains. The Santa rally continues but stretched. According to the seasonality the rally would end in the mid of next January. 

My net liq of 103K didn't improve much. Most of my short term bull puts are out. The leverage is higher at 46. RUT's delta is negative 70 while SPX is flat. I split and rolled the Sept SPX 3700 to June 3600x2. This may hurt me if the downturn comes. I will try to reduce it as soon as I can. My limit is on buying power. 

I traded some O DTE this week. I am still weak at enforcing the stop-loss rules. I keep thinking and looking for different ways to void take stops. I need to study the type of stop-loss orders for the 0 DTE, especially for IF because it involves 4 legs. I took a stop which executed at higher prices today. I must be very good at it before I can succeed with this strategy. 

Expected Pull Back 12-11-20

 The majors pulled back this week as the seasonality chart indicated. All of the major indices except the RUT closed in red for the week. But the trend lines are held daily and weekly. Dip buyers are still active. The pullback may continue to early next week as the stimulus package is still pending in Congress. 

My net liq is at 103K with delta neutral. The leverage stays at 447, the highest point in Dec. I am still walking on a thin line for my net liq balance. I haven't been able to collect enough premiums to cover my short call rollings since Nov. I am net out $8K for the same period. RUT may provide me an opportunity to reverse another short call. I need to be patient for a decent pullback. It has run up so much from Nov. On weekly, it is above the upper Bollinger band for five weeks now. 

The shadow trader caused me $400 this week on an AMZN BF call. I missed some of his profitable trades last week. My 0 DTE had mixed results this week. It may be just B/E at the best since I didn't trade it on Monday and took stops on Wednesday. I need to be more directionally engaged and patient. 

New Highs One After Another 12-4-20

 I skipped two weeks of the journal during the Thanks Giving holidays. The majors continued grinding up making new highs one after another while the small caps leading the charge. SPX closed at 3699 and RUT hit 1890. It has been an incredible run after the election. The seasonality is behind it as well. Now with the century numbers insight, the majors may pull back or take a breath before resuming the run again. The seasonal pattern also indicates a pullback in early Dec. 

My netliq close at 106K and the leverage at 425. The risk reversal to longs I did after the election has saved me on this up wave. I have rolled my long puts continuously to keep up with the surge. I may be able to exit my RUT long puts by next January and reverse another short call. SPX is way out in next Sept. I have rolled the two down 100 points. But I don't have enough buying power to split and bring one close in time. The ET positions are unwinding. Hopefully, I can exit the long positions before the end of the year. 

The shadow trader is working fine. It gives me some fresh ideas but doesn't generate enough income. I entered a couple of debit call spreads for TSLA and AMD. So far I got the direction right. It's another skill to book profit. I will continue to practice directional trade.