March Bear Corn - Exit

March Corn Daily 2/8/22

Sunday evening 2/6/22 10:55pm ET I Tweeted:

March Corn Daily 2/6/22

"Its Sunday night and we gapped up at the Open, then started drifting down. I believe the most likely action from here is for March Corn Futures to fill the gap and reverse back up. Therefore, I entered a limit buy order at break even, which is 622. The previous Close was 620 1/2, so we should hit 622 on the way. In case price doesn't come down to 622, I also entered a Stop at 630 just over the current high."

As you can see on the top chart, from today, price did continue downward as I said, but it didn't come down as far as I thought it would. So it hit the 630 Stop.

A "Doji Gap Up" 2-candle pattern is very Bullish. So, rather than hold on and see if it just does a small retrace upward and come back down, it seemed much wiser to exit and wait to see what happens.

This strong change in sentiment was quite a surprise when I saw it, but not surprising in the bigger picture. It's happened to me before and will most likely happen again. It's just a part of trading. Anything can happen and we have to be prepared to deal with it when it does.

Summary:

Entry: 622 1/4

Exit: 630 1/8

Loss: 622 1/4 - 630 1/8 = -7.875 * $10/pt = -$78.75