The much anticipated USDA WASDE August Report will be released by tomorrow noon. Grains auctioned up and down in a relatively small range. I read a High Tower's report regarding the WASDE numbers. The tune is fairly bearish. Based on the report's price outlook and trading strategies, I bought puts in all three grains. I also added one each to my under watered directional puts which I entered earlier. I got filled 9 puts and 3 rollovers. I started to realize that I may be too heavy on put side. I don't have any calls other than those bull puts, to protect myself in case there is a upside surprises. I may consider to buy couple of calls in wheat and soybean tomorrow. Most High Tower's trading strategies are spread.
ES reached a 50% RT on daily today. Is there going to be another sell off base on the Fib level? Based on the past pattern and current trend it's not likely but possible with a push down. I may add bull puts if ES gets another pull back.
I will be focusing on grains before the report. If they are turning down again I will have to wait 1-3 days to see how bad they will get.
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