Our corn trade went to mush. We closed under the 8ema but didn't form a sell signal. Normally I'd hold on to see the price action of the beginning of the next candle or maybe even hold on longer to see if we get support at the upward sloping trend line under our bottoms.
However, take a look at the 3 thick upward angled white arrows. They point to similar upward trend lines. What happened at each? Break through to the downside. I put a question mark at the base of the current trend line because we don't know if we'll get support or a break down. Its about 3 points further down to find out (318-315=3*$50/pt=$150).
Given the recent history indicated by the arrows, and the ugly Bearish charts for Soybean Oil, Soybeans, and Wheat, I think the best decision is an exit now and re-evaluate in the next day or so.
Sold the ZC July 340 Call for 3 1/2 at 2:19:12pm ET. Waited until the last minute to make sure we were closing under the 8ema.
Loss: 3 1/2 - 5 1/2 = -2 * $50/pt = -$100.
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