ES 3339?? actually, that is not too far away! Another 10% down
Yes, I have not seen this PROLONGED INTENSITY IN SELLING for a long time, maybe the DOT COM BUBBLE bursting. Today, "BID-lessness" was a
low HIGH, in my opinion; hence, my decision to move towards RISK OFF as much as I possibly could. And, this cannot be ONLY the RETAIL and DIPBUYER crowd....
More than 90% of stocks in the S&P 500 declined today. It's the 5th time in the past 7 days. Since 1928, there have been exactly 0 precedents. This is the most overwhelming display of selling in history.
A tense & dramatic day with the markets still not showing the SELLING EXHAUSTION necessary for a sustainable LOW. I have seen this type of market before and it is not an optimistic one. I decided to implement hedge shorts to reduce risk, to hold all my LONGS, and to place SELL STOP orders to partially reduce risk & losses if the markets FLASH CRASH. However, this is not guaranteed to work but I have enough partial hedges in place.
I am satisfied I did my best to reduce losses today and managed to keep account loss to 3.1 %. That is good considering the situation and also after a 4.8% gain yesterday.
Yesterday, almost everything was profitable; today was the opposite. But, large profits in HEDGE SHORTS and NQ DAYTRADING as well as a surprising rally in TLT helped to keep losses below 4%.
I am preparing for a worst-case scenario with a CRASH being a higher probability that it has been for at least 2 years since the COVID plunge in 2020. While the selling today was heavy it has still remained quite intense and the fact that ES could not recapture 3700 by the end of the day may indicate very heavy selling on Friday and possibly Monday.
Or, it could be the selling is almost over and markets will bounce in the second half of June. But, this STILL does not look like a climactic selling frenzy to create a LOW.
I really went to town with UVXY PUTs, now holding 88, and will buy more. I still hold a few AUGUST OPTIONS - mainly CALLS - but will roll them as soon as I can. I prefer rolling options instead of STOP LOSS in many cases where I believe the OPTIONS will finally be profitable but requires more time. This also helps in getting out of the Options before it hits that rollercoaster part of the Option Premium Decay curve. I either close the Option or roll into the next expiration.
