The majors continued volatile swings with some buying activities. VIX is hovering around 24. The big tech earnings affected the mood of the market. FB lost 26% in one day while AMZN gained 14% after the ER. The futures swung 1% up and down overnight and back to normal in the RHS. All four majors closed in the green for the week after 3-4 weeks in the red. It's a sign of improvement. However, they are still in the downtrend in daily and weekly charts. They could be building a new balance area. My view is that the market is exploring a new acceptable value area with the inflation and rate hiking economical reality.
My IB Netliq closed at $155K up from last week's $139K. The leverage is down to 328 v.s. 372 of last week. The realized P/L is $21K, which only recovered 1/4 of January's loss. There is a lot more work to do for a full recovery. The IB ended with -$1.5K cash due to the 80 shares of TZA. There will be a $2K cash from the SPX long put spreads ITM settled over the weekend. The 0 DTE in my small accounts continued to perform well. It realized a $1.3K profit for the week excluding the $350 from Monday, Jan 31.
Looking at the current charts and the seasonal pattern, the market is not out of the woods yet. We may have one more volatile week ahead at least. I was able to reduce one SPX short put from Jan and moved one RUT short put to the end of Feb. Many of my short calls expired on Friday. I took two stop losses for the week. One was a 1 DTE IF and the other one was an SPX put. I am glad I did regardless of the end result. I entered a further out PS to recover part of the stop loss.
I am thinking to trade the 0 DTE in IB account when the PB is allowed since the strategy is working for the other accounts. I will study it further to refine the setups. I just have to follow my hedging and stop-loss rules.
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