The March Mini S&P Index is down 7.25 points this morning at 1098.50 as I write.  The included chart shows that the S&P, once again, failed to pierce the 5 weeks highs up in the 1115.00 area, and is now falling back again.  Because all of the recent lows have been higher, I still expect an upward breakout eventually.  Now, if some of the recent price lows are broken, then we will have to watch for the S&P to hit sell stops and drop in price relatively quickly.  I would prefer not to do anything new in the S&P until that break eventual occurs.  The question is; Which way?

 Followers of this letter should be long one March Mini S&P (1190 strike) call from 17.00 and short 2 March Mini S&P (1220) call options from 9.50.

You should also be long one March Mini S&P (1000.00 strike) put option from 23.00 points and short 2 March Mini S&P (935 strike) put options from 12.75 points each for a total credit of 2.50 points or $125 gross.

March Mini S&P options expire in 92 days.

 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.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.