Morning Commentary Thursday March 11,2010

The market continues it’s relentless move upward but perhaps some reports due out this morning and tomorrow morning pre market will dampen enthusiasm. It is best however to be prepared for more upside while keeping in mind a pullback is due.

Last week a student asked me to discuss bond option trading from time to time in this commentary. The 30 year bonds have been relatively quiet during this recent run up in the market and being short premium has worked well. This afternoon a 30 yr bond auction will be held by the government , this can move the bond market. We will see if the appetite for U.S. debt continues or is beginning to wane. If you are trading these options today keep a close eye on the results.