It was a chopping day as expected. ES stayed in the range of yesterday. Fed Minute releases only provided bigger chopping. The prices were up and down in a 6 point range. Put premiums continued to stay low. There was not enough fear of further drop.
CL dropped another 1.6% after inventory report. It was an orderly drop. I set several defending level and entries but none got filled. It's challenging $92 at the last break out level in weekly chart. My $90 put position will be in big trouble if we lose 92. I forgot to buy USO puts to hedge my position as I thought about it couple days ago. I didn't implement it as I was hoping the Fib 82 could hold. A typical of "hold and hope, but no action". I may have to take the hit of stop out if the wave three is actualized. I will buy a put position to hedge it on a small pull back tomorrow.
Grain complex had a cross board sell off today. According to Arlan, big funds started their portfolio re-balancing and positioning for Friday's World Production Report. I will get out my ZS 1220 put tomorrow. ZC hit a new low of $4.15 today.
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