Down day, but a good day!

I added to all short positions today at the open. The SPY 89.07 and DIA 83.24 levels hit yesterday allowed de-leverage. The Q's have not de-leveraged in a while and there is a significant price discrepency between the NASDAQ compared to the DOW and S&P. I did de-leverage some of the Q's position along with SPY yesterday (since the Q's had a lot more to travel to their deleverage area). The majority of the capital raised with yesterdays selling of puts has now been moved over to the Q's position, which has a significant more return potential that either the DIA or SPY. I did close some DIA puts today also, but turned around and just fed that coin to the Q's. I have some coin on the side that I would like to get into these positions, but that will only occur if we see any further strength (or significant weakness followed bt moderate strength) until we hit the pre-defined reset levels. If some major weakness developes, I do expect one more significant bounce before my exits on these trades. That bounce will be initiated by the de-leveraging of the COMPQ/NDX/QQQQ. I will also have puts under extreme accumulation with that rise.

You may have noticed the Q's decline expected yesterday afternoon did not materialize. That was half-way expected. During this upward thrust (since March), the Q's have had more opportunity for deleveraging, and when the DIA and SPY simultaneously hit their levels, a bounce was sure to follow without the Q's getting their chance to deleverage. The following rise did happen though, which allowed me to compile more puts and I'll have to wait a little while to unload some Q
s puts. I do expect that level to be taken out by the end of the week however, and support a bounce for one more shorting opportunity before this market cycle is spent.

Have a good night!