It was a complete turnaround week from the selloff last week. The majors took off on Monday and hit new highs this week. SPX and RUT closed at 3387 and 2333 ATHs respectively. It appears the Feb seasonality is in play. There could be another leg down to retest last week's low before resuming the uptrends if the seasonality holds true. However, the MACD and other technical indicators just turned positive from last week. I will keep both possibilities in mind.
My net liq improved a little at 103K. The leverage is at 4.52. I was expecting a double top so I placed some short calls in SPX and RUT which burned me today. I am still struggling with my stops. I had to roll some of my SPX and RUT short calls as they were deep ITM today. If I had stopped them at 3X it wouldn't have caused me these 10x losses. One thing I was able to do is that I reversed one short RUT 1420 to long call out to 2900 in Sept on Monday. This risk reversal saved me from the big rally this week. I have to work down the strikes like I have been doing with my SPXs.
I realized that the major factor that blocked me from turnaround my trading is not to make stops. I won't be able to do the work successfully without following the rules and the basic math. Period! I will follow JO in FB for his 5K trading practices. I want to learn his various strategies. Stick to it.
No comments:
Post a Comment