Tuesday morning notes

Futures are all up slightly this morning and the odds are good for a gap fade (gap fill). Some of the quant studies that appeared suggest some consolidation and possible weakness in a couple of weeks. I may look at taking a short on the ES at around 1270 and hold for a 4-5 point profit target.

Market internals as you would expect yesterday all finished squarely positive. Cumulative ticks finished at +50,000 while breadth and A/D lines were also very strong. I'm also looking to play some condor ping pong with my short call spread on the ZB. At this stage I'm looking to condor it off by selling some put spreads as I think there will be some support coming in and if we do see some equity weakness in the next couple of weeks then that should keep treasuries afloat (risk off trade).