Pre Market Tao Tues 7-21-09

ES traded up over night 954

Crude up
US Dollar flat
Asia / Euro stks up

Tape is bullish


Looks like Spy gaps up wet another day.

10:00 et am........Earnings are coming out better than expected but the bar was placed so low by the analysis's so I am not surprised.

The market gaped up at open and is now settling back down into yesterdays range..I am not a buyer up here but I am not a big seller either ....

I have not been impressed with the volume in this rally but I must respect the bullishness .
At this point I think the current lift of 10% is about out of steam but as long as the US Dollar is falling out every morning this will continue.

I still have on the Spy PUT I entered yesterday and added another at the open but it could all fall apart if the close is above this AM high. This market could take off to the up side quickly.

I expect a retracement back down to 9250 - 9150 zone before we turn and continue to the up side .....keep the stops up!