A Disaster Week and Month in July

 SPX closed its third down week. The selling accelerated after the FOMC head-fake popped to 20 DMA. The July NFP on Friday was +114K v.s. 176K expected. The 62K fewer jobs surprised the market. The broad market sold off. SPX was down 100 pts, -1.85%. NQ fell 2.4% into the correction territory. SPX ended down three consecutive weeks. It's -6.5% from the ATH of 5670 on July 16. It closed right above the 100 DMA and 20 WMA. These were the support levels for previous pullbacks. It also touched the Fib 50% P/B level from April to July. 

IBQ Netliq suffered the biggest loss in the last 2 years. It's down from 119.8K to 70.8K, -49K, -41% in one week. The last week of July included two days in August. I totally mishandled the volatile week and ignored the seasonality. I forgot the lesson of the major event rule. The realized P/L is -$77,306. I failed to set up the stop loss at 3X for the RR-adjusted positions. The cash collected is -$2370 as I spent over $4.8 K to buy hedges in the last 3 days. I remember this is the first time with negative cash flow for this account. The options' value is almost up 10%,+40K from -484K to -524.3K. The delta doubled from 107 to 217 with this -4% week. The leverage is up 45% from 548 to 992, the highest of the year again.  The total positions are C9 +2 and P10 +2. The number of the SP is the major cause of the drawdown. The account is in deep red and faces a liquidation warning over the weekend. There were 109 trades for the week. The commission cost is $394. I traded AMD options back and forth to void any possible assignment. There are only 2 positions left for next week. It's not worth the risk and effort to trade these single stocks. I didn't add a 1-1-2 for the week because the August ones are underwater now.       

The IBP account suffered a big loss from my overconfidence and breaking rules.  The SCs had some recovers while the SPs deep ITM during the selloff. I split an SP 1:2 the day after FOMC. I was confident the rally would continue. It was faded at 20 DMA. I failed to place a stop-loss order and I  ended up holding the losing bag. I broke the rule of position -1+1. The realized P/L is -$24168 for the week. It washed the gains from last week. The cash collected is -$713. The 6 SPs are deep ITM as the 5 SCs. I will close the 5370SC to release some b/p on Monday.  

Lessons and Plan:

1. Be objective. I tend to guess or wish the market to act in certain ways. Have different market scenarios and plans accordingly. Be aware that the market may be up, down, or flat.  

2. Place a stop-loss order right after a position is filled. 

3. 3. Recognize the emotions. Fear and overconfidence are both dangers. Let the urges flow through.