TRADING WEEK JAN 21ST-JAN 25TH

The psychology of the market officially changed this past week. Bullish sentiments are back in vogue. The fear of re-pricing do to a consistent rise in interest rates seems to have vanished. While the VIX and VIX futures have declined, they haven't exactly gotten beaten up. There is solid contango, but the front months are not much lower than the back months. The market tumble is too fresh in every trader's mind. The premium levels are not so high as to demand selling them and not low enough to take a shot at buying them. Bullish vertical spreads with a watchful eye to the downside and the ensuing adjustments might be the way to go. There are no big economic numbers this week, nor are there any big earnings announcements.