{+++} 100 Billion.
That's the amount of euros floating to bail out Spanish banks, and it was enough to shoot up futures a good percent.
Let's think about some psychology here, because it's critically important to understand the motivations behind those with skin in the game.
First, we're coming into Jun opex, so this pop is enough to clear out some insurance that may have been hitting some books on the recent correction. Speaking of insurance this liquidity will most likely tighten CDS spreads and get some of the large banks in some less bad positions on the Eurozone endgame.
We've also got shorts that will be squeezed as well as those with high cash who are kicking themselves for not betting big. They could cover and chase into this gap up.
That's the battleground-- will institutions continue to provide distribution into this market gap up? Or will they hold pat and tighten the screws on the shorts and high cash holders? That's the play this week.
Combined with opex, it should be fun.
Now I'm in no position to play this in size. I'm in some super-seedy hotel in Sonora, CA and there are 4 burnouts sitting outisde two doors down who were asking if we had any beer for them. And no, we don't.
So I'm operating from more of a 30,000 feet view, focusing on closing price action and index volatility over trying to watch every tick and game every stock. Given the action we've seen and the higher correlations, that's OK for me. Let's take a look at the vol landscape in the SPX: 
Blue line is HV, red/yellow are IV's.
The blue line is continuting to creep up, which means we're still in a higher vol, big-dumb-stupid-ugly-macro-range.
Odds are with the eurozone relief we will see a drop in risk premiums because all is better. I tend to disagree. If anything it is an opportunity to rehedge or lighten up on positions that you may have been hating for the past few weeks.
If we see the VIX drop under 20, that will be a good time to pull the trigger on some Jul/Aug directional put calendars. Something like the Jul/Aug 128 put calendar in SPY. One of my favorite directional plays remains NTES.
It's been a relative strength play and a solid leader in this mess of a market. It pulled back on friday, and I think the Jul 62.5/65 bull call spread is a good way to play it. 
IBM is an oversold play that still warrants July bull put spreads. Don't try to fine tune the entry here, maybe 1/2 position here and add 2/2 if we do gap fill this week.
