It was the forth day of over 1% move in ES/SPX. I was expecting a day of consolidation considering that the market will close on Columbus Day on Monday and Henry from John Carter's service indicating that every Friday the week before options expiration was a turn around day for the last many months. Indices were holding up well until 2pm. ES closed at 1900 and SPX closed right at its 200 SMA, 1904. I was pretty calm until the last hour. I added 2 VIX to let up my positions in both IB accounts but only to see them got crashed in the last 30 min sell off. I had two SPX bull puts filled in the last hour which were planed this morning. I will try to avoid near term bull puts and look for selling opportunities far out of money and date. In the meantime get ready to take stops base on my rules.
Grains didn't react to as volatile as I had expected after USDA report. The report was better than trade expected in terms of production yield and ending stocks. After initial pop corn and soybean fall 2.9% and 2% respectively. Both are still way above their contract lows. Wheat was up 1% as USDA estimated lower ending stocks and higher demand. None of my pre-set orders got filled. As I am still adjusting to the notion of "Nothing is for certain in trading". Get to be prepared for an opposite result whenever feels so sure about the market.
Will have more in my weekly reviews tomorrow.
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