My plan:
Indices drifted down overnight after European open. ES breached Friday's low but still above CHVN of 2067. Bulls may be tired when Friday's big job report didn't produce a break out. ES has supports at 2064 and 2060, resistances of 2074, 2078 or a new high of 2080. I will sell ES/SPY naked or spreads puts on any break down in short term. No bear calls unless a clear break down with pull back.
Grains held Friday's ranges overnight. I finished seasonal review last night. It looks grains basically followed their seasonal tendencies. For Dec, corn and soybean are in up trending, wheat is expecting a sharp down turn. I will try to buy couple corn and soybean calls to protect my bear calls, roll out underwater positions and lock in profit. I may use 1:1 rollover or 1:2 risk reversal to keep the number of cons in balance.
My executions:
I didn't expect a break down in ES/SPX below last Thursday's low. ES tested S3, 2054 which I didn't even list it. It appears the pull back is not over yet from the way it closed and evening session. ES is in a CLVA until 2038 in its current range. I sold another month end of 1920 near 2STD and 90% POM. I tried to sell SPY in Etrade but no fills. Tomorrow may be a better timing any way. I was short of time to even look at RUT consider it was been patience. My directional SPY, IWM come to my worst scenario. It appears I will end up losing both sides except the last IWM call was filled in this morning's push up. It was luck to the best.
Corn tried to challenge the $4 mark this morning, then it turned out to be a head fake. It looks like back in the range waiting for USDA report on Wednesday. Soybean and wheat are holding in range showing a little weakness. I didn't have any calls filled as I planed. I was a little concerned about the upcoming report but the seasonal trends are clear. I will try it tomorrow again. I had one corn bear call rollover and a 880 soybean bull put profit exit.
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