[This is just a short call for today’s S&P 500 [^GSPC:SNP] trade. Please also read this morning’s Opening Print story, “I’m not the cable guy: Trading, broadband, war, vacation, & common sense”]
The Asian markets closed mostly higher and in Europe 11 of 12 markets are trading strongly higher. There are no scheduled economic releases today but Atlanta Fed President Dennis Lockhart speaks on the economic outlook at 12:40 ET in Atlanta.
This week there are 10 T-Bill and T-bond announcements or auctions, 6 Fed governors speaking, outgoing Fed Chairman Ben Bernanke will hold a conversation in Washington on challenges facing central banks and the January options expiration.
While there may be no numbers out today, we think we are in for busy week. Unlike last week, when many traders were out due to the extreme cold, everyone should be back trading this week. We expect some big movement.
The S&P is going to 1850+ this week. On last Friday’s close the Russell was making new highs and the QCHA was firm all day. There was buying going on in stocks all day. The bears may get their chance this year, but the S&P is not going down into the January expiration.
You have two choices: sell the early rally and buy weakness or just make it simple and buy weakness.
In Asia, 8 of 11 markets closed higher: Shanghai Comp. -0.19%, Hang Seng +0.19%, Nikkei +0.20%
In Europe 11 of 12 markets are trading higher: DAX +0.26%, FTSE +0.02%
Morning headline: “S&P Futures 1850 On Tap”
Total volume: BETTER 1.45M ESH and 5.2k SPH traded
Economic calendar: 4-week bill announcement, 3-month bill auction, 6-month bill auction, Dennis Lockhart speaks, Treasury budget.