Indices were expected to be choppy or downward somewhat. Around 10AM, the news of Chinese central bank announced that it would increase 500 million yuan liquidity to banks in China to stimulate the economy. The market rallied immediately. ES popped about 15 points without a pull back. Now ES is parked at the top of its last CHVN. It looks like ES is ready to retest the high of 2002 made 9-3 or make a new high if Fed provide some good news tomorrow. Otherwise we may see a sell of based on seasonal, pending Scotland vote and Alibaba IPO. Either way, my job is to manage my risk. I didn't place any order for indices today according to my plan.
Grains tried to pop following overnight's action but failed to rally. Wheat made a new low of 491.5 intra-day. Corn and soybean made couple points gains in a consolidation mode. I closed my soybean 1000 put at $2525, a 200% pay off. Every bit helps to curb my losses.
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