The morning spike evaporated and there is serious event risk on Friday.

Futures are rising again but these gap and crap opens are dangerous in addition to the weekend event risk. Congress is playing chicken with President Obama on the tax deal and negotiations are ongoing. That means we have no idea what is going to be presented for a final vote. I believe it will be market positive but there are too many politicians already trying to build their platform for the 2012 elections. Anything is possible.

We also have the potential for a rate hike from China. They will announce their inflation rate for November on Saturday and they are expected to announce a rate hike on Friday evening. Depending on how aggressive they are we could see some volatility in our markets.

I see no reason to jump into new positions tonight. The one aggressive play we have left, VMW, is progressing nicely and I plan on adding some new ones next week. I received quite a few emails last night and everyone was eager to see more DITM plans along with the normal plays.

Keep your fingers crossed there are no complications this weekend and we will add some plays on Sunday.

Jim Brown

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