Mr. Market likes to throw a curve ball once in a while. As ES fall over 10 points last night I thought I had a good chance to get in on this pull back. It opened with a slow push. I was expecting to see some resistance level to hold, such as yesterday's low and fill of yesterday's gap. But buyers were relentlessly crashing all the levels until passed yesterday's high. It was a 23 point range day from a deep loss to a small gain for ES. I sold all of my SPY and ES calls early in the morning with losses. They could have become winners in the afternoon. Of course, hindsight is always 20/20. I only had one fill of 1755 for 2/28 at end of today. I felt that was the highest I want to go for two weeks out.
ES is pushing into the last balanced area created in last Dec and early Jan. It may take some effort to push it through to a new high. I also noticed today that 10 Year Bond was moving higher along with equity market. Is it another curve ball coming? As of this writing at night, ES is falling into yesterday's range. Is this a new pattern of drop at night and up in the day?
CL is holding $100 area so far. We may see it testing $102 area as last night's drop got pushed back. I will wait to see where it breaks out before add any positions.
Grains got boosted by strong export data, especially for the soy complex. I had a bear call of 1430 based on expectations that South American soy bean should come onto market soon to compete with US product. But the push up may not be over yet. it's kind of counter trend trade and I shall manage my risk accordingly.
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