12:45pm (EST)

The bulls and bears seem tentative to place big bets ahead of this week’s fireworks which could go off any moment.  The show will officially start here in the U.S. with tomorrow’s economic news (Fed’s Beige Book) and today’s ISM Services numbers were mildly positive.  The index came in at 53.7 for May, versus expectations for a print of 53.4.  The uptick snapped a two month skid in the service sector index but anything above 50 means expansion.

We have mentioned how Wall Street will be expecting Big Ben and the Fed to say something sweet on Thursday but some of the other Presidents will be speaking today and tonight. 

St Louis Fed President Bullard will be making comments about the housing market at 2:15pm (EST) and later tonight Dallas Fed President, Richard Fisher, and Chicago’s, Charles Evans, are speaking at 7pm and 7:30pm.  Some of their comments could weigh on futures and provide some clues on what Bernanke is working with.

Of course, any Europe news could rock the market or provide a lift-off for the bulls.  The bears continue to plug away at lower lows but there are expectations for a huge rally by week’s end.  We aren’t so sure but we are being proactive by locking in some profits.

Our portfolio is still rather light but we are still trading this choppy market as we are waiting for a breakout or breakdown to load up on our next batch of trades.  The beauty of options is that there is always a trade but sometimes we have to make sure of direction.

Having said that, we do have profits to take on one of our current trades which is giving us a whopping 240% profit!  Although we have been trying to squeeze a little more juice out of these CALL options, shares are pulling back and our Hard Stop has been triggered on half the trade.

We will keep a little on the table and our subscribers will bank at least a 200+% gain but we have been in the position for over a month and it’s time to look for new plays.  We can use the profits to fund our next batch of options which could come as early as this week.

As we head to press, the Dow is up 22 points to 12,123 while the S&P 500 is higher by 5 points to 1,283.  The Nasdaq is showing a gain of 7 points to 2,767.

Subscribers, check the Members Area for the important updates and make sure you ring the resister to take partial profits on our 19-straight winning trade.