Today was the first 1% down day and ES closed below 20 SMA since Feb 25th. The North Korea nuclear threat made people nervous. Perhaps large investors are taking profit before Friday's job report. Is this the beginning of April effect? Funny how things come together at such timing.
I sold some ES options earlier today thinking it was a small pull back. Until this afternoon I realized the selling was serious with NK news. Some of my weekly options look OK with expiration date coming soon. The two April monthly options are under water now. I was too eager to get a position in at two weeks out.
However, I learned not to revenge by adding to the same position to average down. Rather I took another far out of money position to off set the old positions. Remember to plan risk control.
I anticipated NK could be a risk factor yesterday. The news came out a bit late. FT's group got hit this morning too. It's an abnormal day type.
Corn didn't move much today. I lowered my corn target wanting to get out. Tomorrow's export report should provide some price movement. I will take a small profit or loss to exit out.
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