QoD: A pessimist sees the difficulty in every opportunity. An optimist sees the opportunity in every difficulty.
- Winston Churchill
My plan:
US indices played a come back overnight after a small sell off before closing yesterday. It has been a pattern of the last three trading days. The four hour bb band squeeze to the upside played out so far. The large balance of 1965-2070 for the last three month looks ready to break one way or another. It's more likely to the upside giving the long term uptrend intact. I would be cautious selling bear calls today unless a clearly failed break up. I will try to sell puts in far OTM on pull back. Keep in mind there is a possibility of break down with a possible HS formation.
Grains are awaiting USDA WASDE today at 12pm. I forgot to verify the date yesterday when I added the wheat bull put. I won't add any positions today and wait to see if there is a follow up one way or another tomorrow.
My execution:
The upside squeeze played out in the afternoon session. ES closed near the top of CHVA, 2066 again. It may break out this time baring any geopolitical news. I didn't have any new positions on either side. I didn't get filled any puts in early lower test and didn't want to sell calls before the break play out. I closed Feb 2,3 ES and RUT. I now have some armors for next round.
USDA report didn't cause any large swing in grains. I had only one wheat bear call of 620 closed. Corn had a bullish number on the ending stock. I will wait to see if there is any follow through tomorrow.
No comments:
Post a Comment