Lessons

The current market is too volatile for my strategy to give consistent results. We got stopped out and now we are completely out of market. There were two mistakes made in March - (1) I came late to the party on the long side, and (2) I tried to extract all I could from the long side. In the hindsight I should have let go of the long side much earlier even though my performance would not have changed much. You can't live in the past, so we have to ask what now? Today the volume was better than yesterday, but nothing to write about. Technically, it appears that the 700-800 range is the new trade. (1) Tomorrow at the open I will establish 1/2 position on the short side with a buy of SDS with a stop loss order of 2% above 50-day S&P500. (2) On the 3x portfolio, let us enter the trade with 1/3 BGZ. Looks like I don't have time to work on the options portfolio. Basically I was going to look for April/June out-of-money put option and buy to creat 1/4 position.