After yesterday's run up which closed above prior day's high, I noted that the bottom was in after a swift rejection of retesting low in my journal last night. I expected a push down into yesterday's upper range and buyers would step in to continue the upward thrust. I was pretty confident about my hypotheses until early afternoon. There was no strong reactions at each support level. So we ended with a bearish engulfing bar after the bullish engulfing bar yesterday. It has been volatile for the last few days. The SPX 200 SMA is about 20 point below and we may test it very soon. I had a SPX and RUT bull puts spread filled for Oct week 4 and 5.
Grain market is having the same unexpected behaves opposite to indices. Corn and soybean held up well today despite generally expected a bearish USDA report tomorrow. I bought 2 corn 360 call this month to hedge my all bear positions just in case we get an unexpected price action tomorrow. I have enough bull puts in soybean and wheat for now.
Quote of the Day: Nothing is for certain in trading until your positions are closed.
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