My plan:
Indices opened lower on Sunday night following Black Friday's pushing down. It appears that market has reached its preliminary target. ES crossed its Fib 23% of 2065 and tested up to 2075. After continuous 6 up weeks trades may take a break before the final push of year end. I will use this bull back to sell some bull puts credit spreads if it plays out. Keep in mind a real pull back may last 2-3 days. I don't have to rush into any trade.
Grains are mixed from Sunday's open. Soybean and corn went down further but stayed in their CHVA. Wheat held up its gains from Friday's break out. My plan for grains are continuing to adjust my positions and reduce risk.
My play:
ES/SPX couldn't close their gaps and ended near session low after several attempts of pushing up. It's hard to say if we will have a follow through or pull back to close the gap tomorrow. The uptrend is well intact. I didn't get any fill for my ES & RUT bull put credit spreads even though RUT was down 1.6%. There is not much fear in the market. I tried to sell VIX 23 calls too. My margin is tight for me to sell naked indices at this point.
Wheat has a strong, 28 points, 4.6% up day with cold weather and Russian supply concerns. All of my bear calls are underwater now. I have only one calls in direct hedge. All of my bull puts had a good relief but not enough to offset the losses in bear calls. Corn recovered its overnight losses and ended up 2C. It looks not ready to give up yet and still holding a bull flag in weekly. Soybean is bear flagged from last Friday's sell off. It appears forming a HS in daily. I am thinking to buy a put to hedge my bull puts for USDA Dec report protection. I still need to aggressively reduce my grain positions to raise my margin.
No comments:
Post a Comment