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!!!
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