The selloff continues for this week. The majors booked the 5th consecutive losing week. Only RUT had one small positive week amount the 5 weeks. All of them closed at the new low of the year. The price actions are quite bearish. SPX has lost 13% year to date. NQ and RUT are sliding into -20% bear market territory. The last time the five consecutive losing weeks occurred was the pandemic crash of 2020. The market may be due for a counter-trend rally soon.
My IB Netliq ended at 111.7K, down 4.6K. It's in the danger zone again. The realized P/L is $8K. The collected cash is $5.8K, thanks to the 7K hedge profit from FOMC day. The leverage is up to 437 from last week's 423 since VIX is above 30 again. I suffered from another mistake of breaking the rule of -1+1 this week. After the surge of FOMC, I reversed 2 SC to SP partially on that night. I was only supposed to add 1 SP based on my rules. This mistake cost me more than 10K. I am still rolling the positions. A big lesson to remember.
The 0 DTE continues to generate positive returns even in this volatile market. The net profit is $6.3K for the week. There was a $900 profit from a hedge on FOMC day.
Lessons of the week:
1. Recognized and control my emotions. Sometimes I recognized the emotions, especially the fear during the wild market swings. I didn't make enough effort to control my emotions.
2. Why don't I transition the IB account to 0 DTE since the 0 DTE has consistently been profitable. There is no point to continue struggling with the rolling and reversing these DITM positions anymore. It has been more than 5 years that I still couldn't unwind these positions. The old system is not working.
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