Snap Back

As we expected the market rebounded sharply from an oversold position this last week. With such a sharp rebound from the recent low of 1343, we feel a revisit to test this low is a distinct possibility. The news from Europe was less than encouraging last week, and a disappointment from the Greek situation could well be the catalyst for such a reversal this coming week. This week we will increase our short position by 2 contracts at any price above 1405, placing a stop for the full 5 contracts at 1423. Our target price is the first daily close below 1360 where we will cash in the full position. Should the market continue down to the recent low of 1343, we will buy 3 contracts at this level.