Tuesday, January 25, 2011

Tuesday morning pre-market thoughts

Quant studies imply strength heading into the end of Jan, that combined with the bullish bias leading up to the FOMC announcement combined with the good odds of gap fill today even with these relatively large gaps, has me a buyer on any weakness off the open. I've got an order to go long on the ES at 1281.25. In the intermediate term, some quant studies are leaning towards Feb weakness so perhaps selling some out of the money call spreads on the RUT or the SPX is not such a bad idea also.

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