Equities continued the up trend this week. ES made new highs and closed above 2000 which was the target of many predicted. What's next? It's likely consolidate on top or have a pull back base on Friday's price action and seasonality. I will take stop of my SPX 2015 bear call if we have a new high next week.
Grains made new contract lows and no relief on sight. I will not add any new bull puts positions except contract rollovers. I have a very much over weighted grain portfolio which is underwater.
My biggest mistake was not taking the stop of wheat 500 bull puts according to my plan. It's ITM now. I will exit it if we get a pop next week as the contract expiration near.
I did well on my corn puts which had a 300% on the last piece of 360. According to the plan I closed all of my Sept puts in grains to lock in my profit and avoid any time decay although the timing of some of the trades could be improved by better reading charts. The key achievement is that I followed my plan and locked in some profit.
Next week, I will study the concept of spread to further hedge my grain portfolio and try to quantify my hedging puts.
I will continue to observe and recognize my emotional reactions. This is a key element of my trading success.
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