Wednesday Morning Markets

The S&P is up in pre market trading to 700 after another weak performance yesterday. Resistance should come in around 712 early and 730ish if we somehow gain some momentum. I continue to think selling calls on rallies is the way to go with a vix near 50.

Ten year notes are lower, 122'02, after failing the last couple of days over 123'00. An early rally to 122'12 would be an opportunity to get short and with 121 as an objective.

The dollar remains bullish with support around 89.00.

Gold's drop yesterday was a little more than I expected and has hurt the charts somewhat. April is now trading 920 and is probably a day trade sale at this point. 870 would be an excellent buying opportunity if we can get there.

Crude is trying to push higher again today and I think you can go with it, at least initially. As I said a few days ago, it looks like it has room to rally to 48.

There is a substantial risk of loss in trading commodity futures, options and foreign exchange products. Past performance is not indicative of future results