The March Mini S&P Index is up .75 at 1095.00 this morning as I write.  The included chart shows that the S&P has generally maintained up upward channel of trading over the past four months.  Lately, prices have had a lot of trouble with the 1114.00 to 1115.00 area.  As you can see from the chart, prices have formed a flat top in that area over the past month.  Prices seem to be rolling over somewhat right now.  Also, notice that all of the selloff’s from the 1115.00 highs, only fell to progressively higher lows each time.  That shows that the stock market is showing a lot of resilience when a lot of other markets are currently in large corrections.  We will hold current positions for now and watch for a breakout of the trading range.

 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 91 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.