The March Mini S&P Index is up 2.50 points at 1118.00 this morning as I write.  The included chart shows that the stock market continues to trudge higher at a very slow pace.  The directional movement indicators are bullish and the ADX line is now meandering sideways at a very low level suggesting no momentum behind this rally.  That lack of confirmation from the ADX line tells me to stand aside for now.  I recommend holding our current positions.  The stock market index futures close at 12:15 PM today and will be closed for the Christmas holiday.

 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 85 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.