Editors Note:

With the markets nearing new highs and resistance increasing, we need to focus. The problem is that we do not know which direction to focus our attention. The S&P only has about 30 points before a new high and the Dow about 200. The Nasdaq is not in consideration because it has been lagging.

Typically, a new high after a long period of consolidation means a pause to reflect. Investors are suddenly left without a target and the market becomes listless. Traders want an overhead target to shoot at. Once into blue sky territory they lose their sense of direction.

This is even more complicated this week because the economics are still lousy, earnings, even "less bad" results will still be down for four consecutive quarters and this will be the worst quarter since the financial crisis. So why are we in rally mode? What will keep us in rally mode once the new high target is hit?

With the S&P futures down -5, Nasdaq futures -9 and Dow futures -38 tonight, I am not going to add any new plays. We do not really know which direction will appear on Wednesday. We could gap down and rebound like we did on Monday or maybe the market is actually going to take some profits before the next surge higher. We are pretty evenly split between longs and shorts so either way the market moves, some plays will do well and others will not. I see no reason to add plays when we do not have a reasonable sense of direction.


NEW DIRECTIONAL CALL PLAYS


No New Bullish Plays



NEW DIRECTIONAL PUT PLAYS


No New Bearish Plays