After a decent day in the U.S. markets with the indexes closing over recent resistance the outlook for Tuesday is for storm clouds. Austria put one of its major banks on the watch list and the Euro fell sharply pushing the dollar back to six-week highs. Dollar up, futures down.

This is going to be short tonight because I just got home from the emergency room with a family member.

S&P futures are down -3 and crude prices have declined to $69.31. The dollar index rebounded to 76.41 pushing all the usual suspects into the red overnight.

Maintain the buy to close order on the Palm Dec-$10 put for a nickel.

Add a buy to close on the Akamai Dec $24 put for a nickel.

Add a buy to close on the Mosaic Dec $55 put for a dime.

Add a buy to close on the Trina Solar Dec $45 put for a nickel.

Check the graphic for new stop losses.

Hopefully the futures will turn around before morning but with the FOMC meeting starting on Tuesday the odds are pretty good that the market will consolidate lower.

If you have not taken advantage of the Option Investor End of Year Renewal Special here is the link to the offer. This is the cheapest rate we offer for the entire year. Nobody can get the core newsletter package at a better rate. Click here for the 2009 Renewal Special Details

Jim Brown

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