Morning Update

Stocks continue to look terrible. Rallies should be sold...calls and/call spreads are preferred with the vix so high, 50+. 720 and 740 would be resistance if we can rally. Bernanke and Geitner speak this morning so who knows how the markets will react to their testimonies, but technically, it's probably a sale at any level above yesterday's close.

Ten year notes are more neutral looking but still a sale around 123'00 like yesterday. It seems like the federal budget mess etc...is more negative for stocks than fixed income in the short run as the continuing struggling economy trumps future inflation fears.

Even gold is softening more. Gold has short term support today under 925 and resistance at 940.

The dollar looks bullish and I will try to come back with specific trade there today.

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