A Sell Off in Dec? 12-9-14

My plan:

ES hit my support level of 2038 overnight, creating a 15 point gap down. Next support levels are 2033-30 and 2020-16. Resistances are 2048-51 and 2055-57 gap fill. I will exit my direction calls on a good pop, sell credit spreads and SPY naked puts on further weakness but far OTM. Watch out S-5 positions' risk levels. I can close this week's position to free margin for another entry.

Grains are in range bound overnight. I will continue to adjust my positions to reduce risks and free margin. I may not buy any options until the USDA Report tomorrow.

My executions:

ES appeared in terrible shape after open. It tested my next support level of 2033, in that CHVN. I ddin't know that Greek government early election talk was the fear factor. However, the downward move is measured. ES/SPX were filling in the CLVA of 2033-2061. They closed around yesterday's closing like nothing happened. It appears the pull back is short lived baring any surprising news. I sold 6 naked SPY 191, 12-31 in the morning push down and 5 VIX bear call 22 with 7 days left. The premiums are smaller but I take what I can get within my rules. I tried couple of SPX credit spreads but no fill. RUT had an opposite run which is unusual. It closed up 21 points, 1.79%. Is small cap going to lead the next push like it was leading lower way before the others? I am going to hold my last SPY call of this week a bite longer to see if there is going to be a pop. I may consider to get in another set of calls for next week. Hypothesis 2 is that there may be another leg down with Greece uncertainty.

Grains were mixed. Corn and soybean seemed to holding up with the seasonal and wheat went down to the balance area low. According to my plan, I bought a corn Dec call of $4.00 and sold a Jan $4.4 to help out partial cost. I couldn't come up a good setup to buy calls due to the high cost restrictions. Wheat came to the lower edge of its current balance area. Seasonal is pointing down too. I tried to lock in some profit positions but no fill. I will try to close or roll some profits before the report tomorrow.