Is Grains' seasonality start working? SB and corn gaped up on Sunday night. Wheat is hanging around recent lows. Is it bottom building or setting up another leg down. If 5, 10 and 20 years' seasonality is any reference and relevant then this should be a bottom building. But the weekly charts is showing a lot of down side room as well. I have to be mindful about it. I sold couple of calls to fade the pop in soybean and corn but no call or puts were filled. Corn looks like at seasonal low. I may want to scale some of my directional puts out to protect my profit although not much were made yet. Soybean is getting some export support but there is a November low in seasonal charts.
Indices had a morning sell off then met with strong buyers. I was so focused on grains didn't catch the V shape bounce. This Wednesday is going to be a big day with GDP and FED meeting announcement. I kind of forced a ES trade of bull put 1910, Aug 8. I could be in trouble if there is a sell of after FOMC. I am only 60 points away from current level. Remember to have patience waiting for the market come to me, not chasing it.
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