Another Sell Off 10-13-14

ES/S&P had a bear flag pattern overnight. It was holding in the CLVA which I identified in last night planning. It couldn't get back into last Friday's range and the rug was pulled in the last hour of RTH. It went down tested the bottom of CLVA of 1863. I followed my plan to exit 1880 early at 1.7X loss. I then entered Nov 7, 1790. The exit was right on spot but the rollover was way before the rug pull so it's under water now. On the other hand my SPX credit spread didn't get fill. I was too conservative and wanted a break even because SPX looked held up for most of the day.  RUT surprisingly held up well today with only 4 points, 0.38% down while SPX lost 31 points, 1.65%. Is it implying for something? We will find out soon. My practice of patience helped today. I didn't place any credit spreads in trying to catch a bottom. I didn't pull the trigger for VIX leg up either. I was suspicious SPX might pull a rug since it couldn't get back in to prior day's range before I left to pick up Alissa at 3pm.

Grains came up to retest the highs of last Friday after the USDA report. I exited my corn calls for a loss. I am also out half of my wheat call for a b/e. I didn't get any chance to exit my puts since they were all up. I still believe the lows are not set yet. But I don't know how long the short squeeze will last either. I will have to take stops for this month's puts tomorrow. I will retry puts or bear calls when the down trend resume and confirm. My margin is below $50k and need to watch out my levels in case of an extreme situation.

My plan for tomorrow.

1. Still try to exit SPX 1880 on any bounce since I had 1820 in as an replacement which I forgot last night.
2. Get ready to take stop for VIX 23 and 25, prepare to leg up for partial recovery. VIX future set this year's new high at 22.80 indicating this time is more volatile then any pull back of 2014.
3. Take stops for grains puts of Oct. Save some dough first and wait for the down trend resume. Time is not on my side. A down turn confirmation would be break of prior day's low.
4. Sell indices bear calls when there is a pop.

Remember that nothing is for sure in trading until a trade is closed. Protect the capital first.