Market moved up overnight and opened in a small gap up. We anticipated an up day based on yesterday and overnight's action. When ES pulled back to close the gap and even further down to yesterday's low I thought that was it. But the sell off continued after lunch and closed March 3rd's buying gap which tested half yesterday. It was an over 20 point range day. Apparently market was spooked by the increased tension between the West and Russia, China's growth concerns. I entered 3 positions in ES this AM and were too early. It's very common for me to enter positions early for lack of anticipating such sell offs. Short of patience and fear of missing are major areas need my attention.
Grains had similar pattern as equities: gaped overnight and falling after open. I made a good entry on wheat as it fall into yesterday's range and pulled back to test yesterday's high again. I added a $300 call (=$1.5k premium) to my 680 position. Now I am in a much better average to scale out my under water position. I didn't a similar entry for soybean. As it pulled back to fill last night's gap down my sell call of next month got filled for hedging my put sales.
Euro followed ES with overnight up and RTH drop. I got spooked by last night's pop and entered an exit order for one of my this week's 139.5 which was crossed overnight. I followed my rule and no regret for taking 50% profit instead of 100%.
I expect some kind of reactive buying tomorrow morning baring no major news overnight around the world. I will use the pull back (yesterday's low at 1854) to exit my 1825 puts scalp to release some margin for better opportunity. I am not out of woods for wheat yet. I will reduce my bear calls if it continues pushing down tomorrow.
No comments:
Post a Comment