Monday, December 29, 2014

Choppy Grains 12-29-14

Indices futures had a small sell off overnight. Buyers stepped in before US open. Trades appears determined to make more new highs before the year end. I closed 1880 bull put for this week to free more margin for new trades. I didn't exit my RUT bear call spread hope for a pull back but didn't happen. I may face a bigger loss tomorrow. But I must get out at 2-3X according to my rules.

Grains are choppy toward down side. Corn and soybean opened reaching new contract highs, then got rejected. Wheat is still hanging on the bear flag and a large HS pattern. It may break down soon if it can't lift itself up in the edge of current up channel. I made 3 risk reversal trades in wheat from bull puts to bear calls and reduced my long positions in March and May. There were no fill in corn roll over orders. I will try again tomorrow. Soybean seems not ready to give up yet. Meals are holding up despite its overbought condition.  

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