My plan:
Indices futures have been tight and balanced in overnight session. With ECB's QE in motion the market may flood with new money. The overall trend is positive. But there is a concern for Greece again. As for today, the down side is 2145, then 2128. The upper side is to get cross above 2060 HVN, then 2070. I will look for opportunity to sell puts on p/b and exit couple bear calls. If we see a break to the upside, I will look for a safer level to sell calls.
Grains went down overnight attempting test recent lows. There were several large cancellations in soybean orders. My plan is the same as last several days: manage risk, take profit and reduce my size in wheat and corn.
I should be patience and wait for market to show its hands before act.
My execution:
ES traded in a small range relative to recent volatile moves. It tried to break down and up most of the day but didn't get any result. It finally came down in the last two hours of the session and closed at 2043, the low of the day. I didn't have any bear calls sold as SPX and RUT didn't break to the upside. I only sold 1 ES of Feb 2 at 1850 for $320. I tried a Karen's set up in SPX for March and a shorter time frame one for RUT. I will give them another try as we may get more pull back next week. I see two conflicting channel in up and down at work. I should be flexible to change my bias base on what market is showing next week.
Grains recovered some of losses from overnight. Overall there were no big movement. I didn't do much today except one profit taking order got filled in March corn. I am waiting for a pull back in wheat to roll or reverse my underwater positions. Otherwise just let them decay.
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