Morning Commentary for Tuesday, August 17, 2010

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E-mini S&P 500	1084.50	+7.50
EUR/USD	1.2882	+0.0098
30-Day Fed Funds	99.8150	-0.0025
Gold	1225.4	-0.4

Several Reports come out today: Housing Starts, Producer Price Index (PPI) and Industrial Production. Housing starts disappointed already. PPI was inline with the consensus. Industrial Production was a the upper end of the consenus. Markets are reacting favorably. European markets also had a good day today. Dollar dropped vs other currencies a bit but not unexpected due to profit taking.

As usually happens when stocks are strong, treasuries are weak this morning. Foretrade’s Market Snapshot said ES is in “soft landing mode i.e. looking to confirm a support level above current lows. Seems like he’s right today with markets pretty stable. Looks like a good day for income traders. Keep your trading rules in mind but have defined price points where you make adjustments. Resist the temptation to overtrade!

Twitter Update

I’ve been updating our Twitter page (http://twitter.com/sheridanoptions). I’ll be tweeting about option and market topics there, in addition to our regular blog posts and mentoring program announcements.