At 10:05AM 930.50 last, "Heavy Put Buying" strategy

Overnight high is 939.75, current low is 928.00.

We are sitting at 930.50.

Since we are turning up and holding above the lows here, I suggest going with a "long position", but reverse and go short on a new low, risk no more than 3 pts in each case.

If the put-buyers are front-running their own sales, then we'll move aggressively lower today.

If we do get short on a new low under 928, then after 30 minutes, lower stop to breakeven.

Tim

BUY DIPS of 5 pts OFF OF HIGHS

946 recent high at 12:55PM

941-940-939 are decent entry prices for longs -

I view 948 as a great exit for any longs.

Risk 3 pts from entry. 938 stop. 948 target.

@ 941, risk is 3 pts, upside 7 pts (3:7)
@ 940, risk is 2 pts, upside is 8 pts (1:4)
@ 939, risk is 1 pt, upside is 9 pts (1:9)

I recommend 1 of each, if you can afford the loss.

The environment is BULLISH here - indeed -

945.25 last 1:01PM

Long Entry - 937 or better - ESM9

First 30-45 minutes is again nervous "call selling" on the price decline - I saw and called out an entry at 936 on the ESM9 and think 5 points is possible from this oversold level, risk was 4 pts, now raise stop to 936 - (trading 939.50 as I type) - target is 941 on this oversold bounce -

There is a good chance we will see an extra-ordinary powerful signal today that is worth 10-15 handles in the S&P - so be ready for that signal - be on alert -

For now, trade oversold from the long side and exit on strength -

Friday, June 5, 10:26AM

Long from 938 - hit 941.25 high - Raise stop to breakeven

3:49PM

BUY a drop to 938 as of 2:38PM

Risk 2 pts.

Target 4 pts.

939.50 last.

10:24AM - BULLISH environment to buy today -

Nervousness abounded in the first 30-60 minutes -

With the S&P now revisiting the lower end of today's range, I believe this is a low risk buying opportunity.

Buy here - risk 3 pts - target 4 pts.

12:04PM

CLARIFICATION

The first hour of trading showed strong sell interest and may be a sign of a short term bottom for today. The way to trade this is to wait for 3 hours and be assured the sellers are not still in the market, which is the reason for the "REVERSE AND GO SHORT IF STOPPED OUT" at 927 (from long position at 932). If the market can break to 927 then I will presume the sellers have the upper hand for the day and we should go with that trend and once again, risk 5 pts in order to make 7. Once short, lower stops to breakeven after 30 minutes if still in the position.

Background noise today - Crude oil is down and that is weighing on the S&P. The S&P and crude are still tightly correlated, unfortunately. Bernanke is testifying so that has the market 'on hold'.

11:56AM