Quiet trade ahead of Good Friday
It was a relatively peaceful trading day. There were a few economic releases, but the market had little to no reaction. Even news of the British soldiers being released didn't excite investors.

The Institute for Supply Management reported that the U.S. service economy expanded at a slower pace in March than it did in the previous month; if you recall, the ISM is an organization of corporate purchasing executives.

Yesterday's rally, and today's holding of gains, leaves the major indices at their best levels since the global correction in the end of February. Speculation of the Fed's next move seems to be the driving force behind market moves. We have found ourselves, once again, in an environment in which bad news is seen as a positive for stocks.

In theory, weak numbers may eventually force the Fed to ease rates. Expect the stock market to enjoy a lighter than expected employment report. But let's face it, expectations are for 135 thousand jobs added. The bar is set really low, it seems like a downside miss is unlikely. For this reason, I think the chances favor a move lower from current levels.

Dow Recommendations
Swing Trade - Flat

These are looking great, let's see what tomorrow brings!

Position Trade -

4-3 I like selling the May 129 Dow calls for $650. It will take a mini-rally to get filledЎ­

3-28 This morning (following the drop) we recommended toBuy the June 124 call, sell the June 127 call and sell the June 121 put. This trade was filled at a credit of $300!! The risk is unlimited below 121, the max profit is $3000 and occurs above 127.

3-21Wednesday morning we were executing one by two put spreads at a credit of $200. In other words, we let the exchange pay us for insurance against our long stock market holdings. For those of you with investments in the stock market, this is the perfect way to protect your assets against a down draft.

We bought the June 124 put and sold 2 120 puts for a credit of $200. The only way that this trade loses money is if the market is below 11580 (without considering commission and fees). Above 124 you get to keep the premium collected. Between 12,400 and 11,580 the trade pays out something...as much as $4000 at 12,000.

Let me know if you have any questions.

3-17Sell puts!! (Yes that is right, I said puts). You can sell the April 118 puts for $850, the 119's for $1,000!!

We recommended to buy these back for $250 or $350 respectively. That was a quick profit!!

Option Trade -

3-1 Early this morning, we were taking advantage of the dip. We were buying the March 122 call, selling the March 124 call and the 120 put for even money. Yes that is right, it was a free trade before commissions and fees! At the end of the day, this spread was already very profitable.

It has been a wild ride, but if you have this trade on you are intrinsically maxed out on this trade!!