9:30am ET this morning I saw we had gapped down again and trading was below the 8ema and price was near the bottom of the candle. That looked pretty bearish. I was tempted to just do a hard exit and capture the little profit that was left. But that wouldn't be the smartest strategy. It would be better to give Corn a chance to recover since we were still above the next moving average under the 8ema, which was the 34ema.
9:31am ET I Tweeted (@JMSTweets) "Entered a breakeven stop loss on the Dec #Corn #Futures option at 15 1/4". We purchased that option for 15 points. Added the 1/4 to cover the Bid/Ask spread and commission.
The stop loss wasn't hit and by the end of the market day (14:20 ET) price has risen a little and closed right on the 8ema. This set up still looks bearish but it lacks an actual sell signal.
So we held the position and we'll see what happens tomorrow.
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