Stocks are once again poised to test the 1040 level in the S&P 500 and the general feeling is that it will break sooner than later. This may set up a situation in which shorts try to pile on at this level and stops get triggered causing a quick break down towards 1030. But if a second wave of selling fails to materialize we could a strong snap back rally.

I am going to look to use a morning sell-off as a opportunity gain some upside exposure through the Spyder Trust (SPY). I am entering a contingent order. Specifically;

IF the Spyder Trust trades $103.70 a share THEN:

-Buy to open 15 September $107 calls at market price

In individual names I still am leaning towards trying to add bullish position at levels that are increasingly look attractive but the lackluster tone of the market and the thin volume doesn’t create any sense of urgency.