Outlook for March 11th

First, I have to say that RT brought his "A" game to the blog and had some great commentary.

As for today, futures look good (6:50 am) but as you know they can turn on a dime. I am still a believer in this rally and think we can hold. For you S&P traders out there, I think there is a possible trade out of this.

I would sell the March $16 puts on the SSO, buy the SSO, and buy an out-of-the money put of the SPY, just in case anything blows up. Right now you will collect about $80 per contract you write and there is a chance we hold this. Another idea, with less risk, is to write the $15 puts on the SSO instead, which gives you more safety and right now you will recieve $44 per contract.

Note: In my view, S&P support looks to be 685 and the key resistance points are 740 and 763. You can use this as a channel and use support as long points and resistance as possible short points, but keep tight stops and look at the action if it approach resistance points.

As always, good luck out there, and ill be back later.