The March Mini S&P Index is unchanged at 1113.50 this morning as I write.  The included chart shows that the March S&P Index traded to new recent highs yesterday but only could close near the recent highs from a week ago.  Today, the S&P has, once again, attempt to trade to a new high for the move since last March but prices are having a hard time holding the gains.  One may get the feeling that this stock market wants to go higher, but what concerns me and what also keeps me from adding a bullish trade is the structure of the ADX compared to the directional movement indicators.  The directional movement indicators are bullish, but the ADX line continues to edge lower or sideways at a very low level.  This ADX line tells me that there may not be a lot of strength behind this bull move at this time.  I recommend holding current positions for now.

 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 86 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.