My plan and Hypos:
Chinese Central Bank announced to devalue RMB by 2%, the most one day move in several years. Indices futures turned down in reacting to the news. ES was down 15 points, 0.6% before open. VIX is up 7%. ES is still in its CHVA. There is a gap below at 2072 and a gap above at 2098. ES and SPX may be filling in this area for today. RUT gaped down but within in the CLVA. I plan to sell puts on break of overnight low for ES/SPX and RUT. Also try to close some calls and puts positions during market swings.
Corn and wheat gave back most of yesterday's gains and retesting their break out area. Trades are preparing for tomorrow's USDA report. It could go either way. I have orders in place to reduce my positions.
My execution:
US indices followed through the shock of Yuan devaluation. After indices futures broke overnight low I sold some puts for late Sept. Couple of my calls closed too. It was nice closing to the up side. However indices futures gave all gains back tonight after Asian markets open. Apparently the Yuan devaluation has much bigger impact than I thought. Is it a start of another round of currency war? Let's see what European market will bring tonight. I will observe my risk and be conservative tomorrow.
Corn and wheat gave back most of yesterday's gain. It appeared to be another clear deck swiping actions before USDA report tomorrow. I will not trade within the first hour after release of the report.
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