Indices broke down on this first day of the month after yesterday's window dressing. All major indexes lost more than one percent. ES touched daily Fib 62RT and no major bounce out of it. It appears from the closing that the selling is not over yet. We may see that bears take a break tomorrow or they could push hard again with some bad news. I filled my 2nd leg of Oct SPX put side in all three of my trading accounts. I left 2 more slots in my Etrade account just in case we have another big selling day. I also sold one set of VIX in each of my IB account. RUT performed worse than the others. I may get another chance to sell a far OTM in next two days. I am more patience and calm now during the heat of selling. I realized that I may have better opportunities in another day if my orders are not filled at the level I feel safe.
Grains broke up today on technical levels. Corn made a new contract low and was near $3. Soybean was near breaking $9 this morning and bounced after making a double bottom. Wheat even broke pre report high of yesterday. It looks like we may see a little more upside before the Oct 10th report. I exited one sb underwater position for Jan and rolled over another one due to the concern of cash level and margin. I am balanced in number of contracts in bull/bear ratio in sb and wheat now. I may buy more puts when and if we get another up day. We haven't had more than two up days for a while. We may see it this time.
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