It's a turnaround week for the majors. The market shook off the Thanksgiving selloff. Jumping started on Monday. SPX gained 3.8%, ended at a daily close ATH of 4712. The intra-day high was 4743.8 which was rejected back on Nov 22. It dropped 240 points, 5.2 % until it bounced. RUT is a different story. It closed up 2.4% for the week but is still in a downtrend below its 20 SMA. The breakout in late Oct was faded back to its old range of 2275-2140. Is it a real leading indicator? If so, it's telling us something. NQ is similar to SPX with a 3.6% return for the week. It's also near to an all-time high closing.
My IB net liq is at 179583, up 29K from last week's 150749. The realized P/L is $7,450, recovered from the loss of -$5,315. So the two-week average P/L is about 1K per week. The premiums collected are $770, thanks to the AAPL long call win. My small accounts recovered nicely with the P/L of $2,993. I am still 7-8K below the high of the year.
My directional trades were profitable. But many trades were breakeven overall. Most of them were from Shadow Traders. The ones I selected didn't have a very clear setup in trend or breakout like longs were below 20 SMA or still in the VA. I did spend more money on hedgings during this volatile time. I have changed my view of spending money for hedging despite they didn't work out. They made me feel safer and not wait for something to happen.
I need to continue to work on my selective setups in directional trade. Also, make sure to set stop losses for every trade I enter. I watched Ray Delio's Principles again. It's important to set goals and take a full effort to achieve them. In the process don't be afraid of failing and confront the psychological pains. The stop loss is a typical psychological pain I am afraid of. I know the reasons to set up stop losses. It's cheaper and safer to take stop losses than keep rolling out. It takes less time and money to recover a stop loss. Period. Those deep ITM short calls are living examples and hard lessons.
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