It's often said that the third day bounce is the rule of thumb. We had a small bounce today after a reject of new low. The bigger question is if this is the 8-10% correction people have being talking for a long time. With the earning season begins market may be cautious in both directions but volatility may increase with good or bad key earnings. My primary tasks are to access and control risk, unwind my risky positions. I will be more defensive and trade less ES.
In the CL front, boy, I am so glad I exited out the bear call yesterday. CL popped up to 102.4 I would have been upside down more than 100%. A good lessen of following rules and correcting mistake quickly.
Grains are still range bounded. Wheat's option premiums just won't barge much. I had to moved my 710 bear call to 4.5 from 3 to close a half of my position. My 705 was not closed when CME halted grains trading 40 minutes before closing due to some kind of technical problem. The WASDE Report is tomorrow noon not today as I wrote yesterday. It will be some volatile reactions as highly anticipated. I will try to exit my wheat and corn bear calls and wait for dust settled before entering any new positions. I also need to check seasonal trend.
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