The 2nd Down Week To The 50 DMA 7-26-24

 The big rotation from tech to old large and small cap continues this week. S&P and NQ are down while Dow and RUT are up for the week. SPX reclaimed the 50 DMA. It's below the 20 DMA and above the gap between 5400-5367. The market is still in the woods. MACD and RSI are both in the negative territory with slight upticks. However, the weeklies are pointing down toward the 20 WMA around 5300. The upcoming FOMC on Wednesday, July 31 will catalyze the next leg up or down.  

IBQ Netliq continues the drawdown with this pullback. It's down 5.5%, -4.4K from 124.3K to 119.9K, setting a new year's low. The realized P/L is +$7793 as some short calls rolled out. The cash collected is merely $762. Most of the directional trades didn't work out. The options' value is flat 484K, +4K. The delta is down from 166 to 107. The leverage is up nearly 5.5% from 518 to 548, the highest of the year again.  The total positions are C7 -1 and P8 -0. The yellow and red warnings are coming back. There were 84 trades for the week. I traded AMD options back and forth to void a possible assignment. A couple of MES directional trades worked out. The commission cost is $272. I added an 8/30, 36 DTE 1-1-2 trade before the gap down on 7/24. The drawdown is worse than last week. My plan didn't work as it heavily depended on the market movements.

The IBP account got mixed results with the pullback. The SCs had some recovers while the SPs deep ITM. The realized P/L is $22403 for the week, a positive number for a change. The cash collected is only $339. It's in a surviving mode. The 4 SPs are deep ITM as the 5 SCs. I entered these SPs right before the pullback. My impatience caused the latest double jeopardy. 

Lessons and Plan: Similar to last week's. 

1. Be objective. I tend to guess or wish the market to act in certain ways. Have different market scenarios and plans accordingly.   

2. Respect the signs and indicators. Do not act when in doubt.  

3. Recognize the emotions. I am currently in the down mode. Let the urges flow through.    

4. Look for other ideas to resolve the current drawdown. Have more hedge and directional positions.

5. The current rolling strategy is unsustainable. I will enforce the 3X stop rule for adjusted positions to contain the risk.