Volatility continued for the week in both indices and commodities. My expectation of resumed uptrend didn't play out even after ECB's new QE announcement. Bulls and bears fought a tug war for a week. It looks like bears won by the end of the week for now. US indices closed at low of the week last Friday. My main hypotheses for next week is downward bias. There are some major Fib and R levels below for SPX and RUT. I will play further OTM levels for next week and sell bear calls on minor pops.
My intuition of some grains positions turned out to be real. When I rolled wheat to May and July bull puts I noted they were risky. I wanted to reverse them to bear calls but didn't. Noe they are underwater. My thinking process and pattern haven't changed since last summer in dealing with such moves. Got to plan ahead and stick to it. On the other hand my patience to stick to March bear calls in wheat and corn is paying off. Overcoming the fear of bounce lead to the right course of actions.
It was a b/o result for the week and month, a big progress to the prior two months. I will keep disciplined and be patient in order to move my equity curve back up.
Nest week, I will prepare to take stops of ES 1880 and 1850 then get in at lower entries. I will continue to follow my plan in grains with rules.
No comments:
Post a Comment