The first trading day of 2014 started with gap down. ES went down from Globex open with a 20 point range. Is it a correction long waited or just a clean deck before resuming the up trend? We should be able to tell in the next few days. VIX didn't react strong for today's sell off. I didn't get any fill for my ES orders.
Grains and CL had a major down day too. Both corn and wheat tested multi-year lows and soybean had over 30 point, over 2% drop on South American weather and better production news. I made a mistake on soybean entry last week viewing January contract instead of March. My Feb 1220 put sell is over 60% under water now. I entered another position at 1180 to prepare for stop out of the 1220 position. I thought CL had a trend change last week after two weeks' up move. It got sold off at Fib 78 weekly level. I should have seen it last Monday. Now my $90 Feb put sell has reach stop point. It was over $3, 2% drop today. I will add one more position between Fib 62-78 level to manage my risk. But don't be stubborn, the drop may not be over yet. I realized to step aside today during the heat of battle on ES and soybean. That is a progress of learning. But I underestimated CL's move. All the option chart levels were blown out of water. CL is now back into last balance and high volume area. $94-93 may provide some support. It may form a IHS on weekly bars if these area hold.
Be patience tomorrow. Weekend decay is not the main reason to enter a position.
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