The dollar traded at new 15-month lows and the markets at new 13-month highs. If we can hold this trend the rest of the week we could really get a short squeeze going.

I believe this was a bullish day! All the major indexes broke out to new highs with the exception of the Russell and the Transports. The Russell turned in nearly a +3% day but it had farther to travel to new highs than the big caps. It was still a bullish event.

The Dow broke over long-term resistance from Oct 2007 and the S&P closed well over 1100. The late afternoon sell off that started at 2:45 on the dollar rebound found willing buyers and we avoided the dreaded climax spike and reversal pattern.

The dollar is trying to move over 75.0 again tonight but struggling. Once it fails at that level for good then the whipsaw action should not be so extreme.

I made a mistake on the Boyd Gaming option symbol last night. I said in the play description we were going to use the expiring November options but told you to sell a December symbol. Rather than close the play as busted I am going to keep it active with the symbol I listed. That is the December $10 put BYD-XB.

No new plays tonight.

Jim Brown



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