The First Positive Week Of June 6-24-22

 The market staged a rally in this holiday-shortened week. It's the first positive week in June after three negative weeks. SPX and RUT closed above 3900, and 1760 respectively. But they both are still below their 20 SMA. This is still a down-trend rally so far. Let's see how long this summer rally could last. 

My IB Netliq made a new low of 65.5K. It's down 6.2K for the week. It was slightly delta negative. I often seem to be late in the game when the trend changes. My hands are tight by the margin limitation. The leverage set a new high of 854 for 2022. The realized P/L is -$21,281 after the short squeeze. The collected cash is $1150. I will adjust my delta to a more positive stand next week. The 20 SMA could be the next resistance. 

The small accounts performed better. I finally unwinded the deep ITM short puts in ET. It took two weeks and over 60K B/P to save a $300 position. It also costs time and the opportunities to make regular trades.  It's another lesson in No-stop trading. My ET account is limited to 1X day trade now. I will start trading 0 DTE in TOS. It should be a gradual switch. I will use the attached stop-loss orders, plus hedges.  

I knew what is causing my long-term losses. I must overcome the fear of short-term losses.     

Another Losing Week 6-17-22

This week booked another restless selloff. Both SPX and RUT lost over 9% in the week. SPX closed firmly in the bear market territory. RUT closed below its 200 SMA weekly. The sentiment is very bearish. After last Friday's poor CPI report selloff, the majors gapped down on Monday. FOMC reacted to the CPI report with Wednesday's 0.75 point rate hike. The higher-than-expected rate hike triggered another 3.2%-4.7% selloff the next day. 

The IB Netliq ended at 71756, down 35K from last week. It's way below the 100K minimum line. It lasted for the entire week. This only happened during the pandemic crash in 2020. My current system is not working. It carries too high of leverage. The realized P/L is -25.6K, compared with last week's +15K. The leverage is up to 8.05 v.s. 4.8 of last week. The collected cash is $7900, thanks to the two put hedges ITM. 

My personal accounts suffered from the selloff. My No-Stop practice is the main cause of it. I kept rolling the ITM SPs for the whole week. It takes up more than half of my buying power. There has not been any improvement in the positions. In the book, I lost $48K, which is most of my profit for the year so far. Unless exit my current ITM positions. I also lost the time opportunities to make profits.    

One lesson and conclusion:

Take Stops!!! 

The End Of The Bear Rally 6-10-22

 The majors reversed the bear market rally after several attempts to break up early this week. It was a big reversal day on Thursday in anticipation of the CPI report on Friday. The CPI report came out at 8.6% year over year. It's at 40 years record. The futures gaped down over 1% on the worse-than-expected report. SPX and RUT closed at 3900, and 1800 respectively. It was a very volatile selloff. SPX fell 5.6% in two days. 

My portfolios took a big hit for the week. IB Netliq fell 30K from 127 to 97K. I had to borrow another 10K from ETQ on Friday in order to roll some positions. The leverage jumped from 376 to 481. I lost $5000 cash on Thursday's assignment. It was mainly caused by my poor risk management during the EOD selloff. The realized P/L is $14,915 on paper. There were some SCs unwinded. Some of the LCs are underwater now. This system is not working in the current market conditions. There is always one side underwater. 

My small accounts took a hit too. ETP had an SP 3X4030 assignment on Thursday's PM selloff.  I neglected to hedge the 2nd leg of 4040 SP. It caused $1,000. I had to roll the threatened SP to the next day. They were rolled to Monday again. The booked loss is $10,635 for the week. 

Lessons learned: 

1. Be quick to change directional bias as the price action changes;

2. Be aggressive to adjust my positions once the market changes directions;

3. Be proactive in hedging short positions. Don't worry about the cost too much;

4. The cost of hedging is smaller than the stop losses most of the time.    

A Week Of Consolidation 6-3-22

 The Memory Day shortened week ended with wild swings in ranges. The majors gave back about 1% gains from last week's huge rally. The majors held their daily 20 SMA but below their weeklies. They are basically consolidated in the downtrend.  

The IB Netliq closed at 122K plus the 5K from ETQ. It's up 12K for the week, thanks to the consolidation. The realized P/L is 5K. The leverage is down to 376 from 457. There was only $500 cash collected. I have a $1.4K assignment due to a mistake in a rolling order quantity. Although I recovered it with extra profit yesterday. It was still a mistake on my part. 

The personal accounts experienced set back as well. The total cash collected is only $1715. I made a big mistake during the wild swings on Thursday. I was overconfident that it was going to be a down day since it opened lower. It turned out to be a huge reversal. SPX started -1% to +2%. I was emotionally stressed. I even forgot to place the hedge orders like I normally do. I started to roll the threatened short calls during the last 30 minutes at EOD. I didn't have enough time to roll the 3 4170SC in my Fidelity account. It ended up ITM. It was a $1.9K(3x$630) loss. The total loss is over $3K including the 2 assigned in IB. 

The lessons learned:

I was too emotionally stressed during the big market swings. I didn't even realize my emotions. I was overconfident on the levels without having a contingent plan, including stop-loss orders. 

I need to focus on the process of trading my system. I should start the day earlier and get ready to trade before the market opens.