February 13th, 2009

See DeCarley Trading's "Trade Like a Girl" article in the March issue of Stocks Futures and Options Magazine!

Equities range trade despite stimulus bill passing.      

After weeks of anticipation, hoopla, and near chaos, the Obama's stimulus package passed.  The $787 billion aimed at rescuing the economy was sold by Obama's claims that it will create over 3.5 million jobs.  However, opponents criticize the lack of tax cuts and question its viability. 

Equity traders didn't seem to be impressed, instead they are looking forward to next week's outline of the foreclosure plan as well as the new rescue plan for the financial industry.  The previous TARP revision announcement left a bad taste in the mouths of stock traders in that details were absent and so was confidence. 

I will admit that I thought that yesterday's buying frenzy would bleed into today's session.  This is especially true given strength in many overseas markets posting gains at the time of the U.S. open.  We now know that this wasn't the case. 

Monday will be more telling, but it seems like the indices will be subject to a retest of the recent lows.  Depending on the "feel" of things, pending Washington event risk, and of course our chart work we may be looking to be a bull via options.  We will begin with shopping for long call opportunities trading at a discount but as the volatility increases short puts may even be in the cards. 

We apologize for a lack of "meat and potatoes" and less than certain analysis.  However, we would prefer to see what Monday brings before making any bold statements.  In the meantime, support in the S&P should be found at 803 and resistance at 836.  Dow traders can look for support near 7,740 and resistance near 8,035.  Support in the NASDAQ will come in near 1208, resistance can be found near 1277.

Sorry so short, have a great holiday weekend.

* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data.  However, market analysis and commentary does.

Please note: A mini S&P chart is used because it is better for charting purposes, but trade recommendations are based the full sized S&P unless otherwise noted.  

S&P 500 Futures and Options Trading Recommendations

**There is unlimited risk in naked option selling and futures trading

Position Trade –

Flat

Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.

Dow Jones Futures and Options Trading Recommendations

**There is unlimited risk in naked option selling and futures trading

Position Trade –

Flat

Please note: A mini-NASDAQ chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.

NASDAQ Futures and Options Trading Recommendations

**There is unlimited risk in naked option selling and futures trading

Position Trade –

Flat

*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.

There is substantial risk of loss in trading futures and options.

Past performance is not indicative of future results.  The information and data in this report were obtained from sources considered reliable.  Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.  Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.