Shorter term, I am still suspicious of the rally in the S&P. I was bearish slightly since 1/23. Today is 1/27 Yesterday we seem to have had a blow off top. People got caught long and then when the negative housing numbers came out, it dampened the initial fervor to buy stocks after the Fed’s Dovish remarks.
Longer term we may go back to challend the 1350 level and 1360 levels. Over the next 72 hours, I think its better to have some 13.00-12.80 puts on looking for a shorter term technical break to profit with.
Also, we have had an impressive 10 day rally from our lows in the grains after the jan 12th USDA.
Old crop CH has bounced 52 cents, Wheat rallied 64 and beans have bounced 80.
An 80n cent rally in the beans to me seems over done.
Today I bought SH 1200-1140 put spread for 15 cents. Maximum risk 15 cents. Maximum profit 60 cents.
I think this has a good chance of being a double in the next 5 or 6 trading days.
That is all.
Have a great weekend.
CER