Daily Option Trading Strategy

After a few days of negative price action, the market has shown signs of life. The highlight this weeks will be Chairman Benanke's Humphrey-Hawkins comments. I'm expecting a bullish reaction. The chart shows that the SPY barely tested the blue support level before bouncing. There is simply not enough negative news to turn this market. Option expiration should have a minimal impact on trading this week. For the rest of the day, I expect a positive bias and a grind higher. I'm expecting that grind to last until Friday when the PPI comes out. That number could drive the market either way.

Daily Bulletin Continues...