Bears Are Back In Control 12-16-14

I missed to write my morning plan again. I was distracted by very low available margin after attended Trader Bite. I had to focus on closing some positions to make my margin back to a safe level.

Indices looked in terrible shape couple hours before open. It gave up yesterday's low touching the down trend line again. They started driving up after open. I had to close my RUT naked bull put of 1080 for a small loss to void a possible margin call as wheat was driving up. ES broke overnight high before lunch. Trades were talking about the much anticipated Christmas rally finally started. I though we are getting the pre FOMC positioning. Apparently bears stepped in when ES/SPX reached yesterday's high. Crude oil and Russia currency tumbling are two big negative factors. ES/SPX closed at a new low. It was the 5th day of sell off at closing. I was waiting for FOMC to provide a lift for the market. Now I guess I need to prepare for both scenarios. I have ES 955, 1950 bull puts of this week in dangers as ES closed at 1966. I will prepare to exit them tomorrow. I will pick up a later date to recover the losses at least partially.

I followed my plan to exit my year end ES bull put of 1950 during the morning's push up. I was still too emotional on the exit and entry, mainly the fear of missing. But I didn't it even though imperfectly. I made a big mistake in handling VIX. I had been looking at March contract as references to my bear call options. Until the later afternoon sell off I noticed VIX 22,23 positions in both accounts were ITM. Trades were pushing to pin 23. I decided to close 22 and 23 at a 3-5X losses. The ignorance cost $1600. I have been doing poorly lately. I may need to step back and clear my head after tomorrow's FOMC. I don't need to have trades every day. I should look at bigger pictures, wait for trend confirmation and stick to my rules.

Grains pulled back some. I am still under a great deal of pressure especially in wheat and corn. I followed my plan to rollover and risk reverse my Jan bear calls. I also made a mistake of buying a Feb put influenced by a twitter. My main tasks in grains are reduce risk and positions.