I want to maintain my shorts in the Dow, with a hard buy stop above 12,400> I am not going to tell you my specific level. When and if i get stopped out I will tell you.
I am comfortable taking a little more heat on my initial short position. However, I am not going to fight this bounce for ever.
I am comfortable being bearish here, especially since today I saw CNBC noting that we were “just 30 points away from our 2011 highs”… makes me want to sell more here. However, shorts are only good if they make you dough. The stops will be there to do their job, should we spike higher.
For now it looks like we are in this trading range, and I am comfortable selling into the upper ranges.
Tomorrow is the USDA report. I bought cheap may puts for 350 bucks a contract. last week these may 6.00 puts were worth 28 cents. I like the risk reward. Spending a maximum of 6 cents on a put which could be worth 5 times tomorrow.
4:1 is good risk reward.
For bullish spec, buy the July 700 corn calls for 17 cents.
I personally did the puts.
We’ll know tomorrow.
That is all.