Thursday report - VISION FINANCIAL MARKETS

A friend sent us something last night that said to watch the 1150 strike price in the SPX.
That the open interest is around 65k (7.5bln in notional exposure) and that most of it was bought at the end of the year and the beginning on 2010. He said if the street is short (which it sounds like they are) that it translates in to roughly 200mil in index futures to buy for every $1 move in the futures.
That is could act like a magnet the closer we get to 1150. Its 6:30 AM Thursday morning, crude is up .21 cents and the SPH is UNCHED.

In Asia 10 out if 11 markets close higher with the one market that did close lower (Hang Seng) only off 0.15%.
In Europe 7 out of 10 market are trading higher. Our call? The S&P cash stats for the Tuesday before the JAN expiration has been up 15 / down 11 of the last 26 occasion.
Despite saying we wanted to sell rallies yesterday we lean to higher prices today and tomorrow. Buy weakness. If they don’t go up today they will tomorrow. We still have 1150-1153 and the 1180-1185 level as out next upside objectives.