The March Mini S&P Index is up 2.75 points at 1124.75 this morning as I write.  The included chart shows that the S&P index continues to sludge forward to the upside.  The directional movement indicators are bullish and the ADX line is beginning to rise.  What can I say, this is bullish action.  Since the 1080.00 area seems to be where the recent lows held, here is a trade recommendation.  I recommend buying one March Mini S&P futures contract right here, and then selling one March S&P 1080.00 strike call option a current prices as well.  This is a deep in the money covered call write trade that gives us a lot of downside protection.

 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 81 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.