Saturday, May 14, 2022

The 6th Down Week In A Row 5-13-22

 The majors booked their sixth down week, except RUT had a small green week amount these weeks. There was a broad-based relief rally today that reduced some of the losses and corrected some over-sold conditions. The length of the downward movement exceeded the pandemic selloff but not in the same magnitude. NQ and RUT have fallen over 20% and are officially in the bear market. SPX barely avoided the bear market after today's rally. Is the market due for a little rest and consolidation?

The IB Netliq suffered a 6K drawdown. It went below 100K for 2 days. IB realized $17.8K P/L. The collected premiums are $4.3K for the week because some hedges are paid off. The leverage is still elevated at 468. Should I aggressively close these underwater positions so I can focus on the 0 DTE strategy which actually produces consistent profits?

The 0 DTE in my small accounts continues to generate cash. The total profit is $4.86K. The premiums are higher with the high volatility. The hedging strategy has been working so far. 

The lessons learned this week:

1. Be aggressive and consistent with the trend. I didn't reverse enough BP to BC based on the expected moves. 

2. Pay attention to the accuracy of my orders. I made two mistakes in selecting the strikes this week.   

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