The December Mini S&P Index is up 18.25 points at 1108.25 this morning as I write.  The enclosed chart shows that the S&P remains in a strong uptrend that is now testing its recent rally highs in the 1112.00 area.  Based on the last two corrections and rallies, the target for this rally should be in the 1115.00 area.  But since we have figured that out by observation, it probably won’t happen like that again.  The bottom line is that, despite all the ‘talking heads” that you hear about that are worried about the stock market or predicting a big selloff, the trend remains upward.  The “wall of worry” is being climbed!  I will start to worry when everyone gets complacent about the rally.  That doesn’t mean that you shouldn’t take some stock profits along the way or buy some protection with either the purchase of put options or writing calls against stock that you already own.  I recommend standing aside in the S&P futures for now, because there is now low risk reward way to enter the market from here.  Please note that as emotionally good it feels that the market is up today on a strong move; prices are still within the trading range of the past week or two.  This is where the TV business channels can get people all emotional and charged up to put on trades that they may regret later.  Keep the emotions out of the trading.  Pretend like you are shopping for tennis shoes.  Do you want to buy them on sale at $50 a pair or do you want to pay full retail at $120 or higher per pair? 

 David Hall

 The information  and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not  necessarily indicative of future results.