DIA 96.39 = BUY

2:04PM

FOMC Minutes due out - so this isn't without risk.

This is the place where stocks found a bottom yesterday, which makes me very leary, however, there is enough put volume to indicate that the smart longs are selling out of their puts and locking in huge gains for this decline. The smart money is exiting their puts, therefore, we should be looking to the long side of this market here.

This morning, however, just for information, the OPPOSITE was true. Their were call sellers all over the market, which implied to me that we were seeing longs capping any advances. Since the DIA had rallied from 95 to over 100 in 3 short hours, it was logical to expect that type of behavior.

Now that we are back at the lows of the day and matching against yesterday's lows... 2:09PM now and DIA is 96.64 bid... it appears that the opposite is true now. Put sellers are booking profits they had bought PRIOR TO their long sales of stock. Very clever players, if you can figure out what they are doing by the "TRAIL" they leave in market prices and volumes....

Buy DIA 96.48 now.

2:10PM

Risk 0.60 DIA pts.
Target 1 hour exit.
Raise stop to break-even after 30 minutes.