The market rebound on Tuesday was lackluster but a good start. However after Tuesday's earnings news it appears we are going to see a major gap open on Wednesday.
I delayed sending this email in hopes the ramp in the overnight futures would fade. Instead it just keeps getting stronger. S&P futures are up +10 points overnight.
We have historically had very bad luck buying these monster gap opens. I was going to add some plays for Wednesday after the Intel earnings exceeded estimates and Japan was not a factor. Unfortunately I do not want to take a chance at getting filled at the high of the day, actually lowest premiums in our case, and then watching the spike fade.
Apple will report on Wednesday and while a bad report there would be a surprise it could be a serious buzz kill for the markets. I believe we are better off waiting another day for this market spike to either break through resistance or fade back to support.
No plays for Wednesday.