1263 is the number of the day.
The S&P (a real index, unlike the dreary DOW) is floating right at the critical juncture of where it either turns and forms a hump that will drag down all markets or it soldiers on higher to take out its 2001 high of 1,300.
You can forget the other indexes, they are all quite comfortable going higher but the S&P shall lead the way. I say it has the legs for 1,330 before falling back considerably but we may have to watch a painful consolidation at this mark for a week or two (likely unitl options expire on the 16th).
It is now up to TOL, HOV, TXN and INTC all of whom announce today and tomorrow. Poor guidance from 1 in each sector may doom the market for the rest of the year. I think that INTC and TXN will guide up though and I can’t see how TOL can possibly be drearier than they were last month. 3 of 4 guiding up is all we need to spark a nice rally!
If you think oil is holding down the markets now, wait until the dollar weakens! These oil moves are in the face of tremendous dollar strength – even COP moved up this week (thank goodness, I was sweating out my Dec calls!). Today is the day I hope to sell if oil inventories show a build, because that will be another green light for the market.
My RIMM puts are smokin’ today as are the GMs, I hope to be exiting my puts by tomorrow because that will mean the market has regained its momentum up but, just in case is why you always should have a little of both!
I am standing by my Microsoft Trade of the Day as they finally lost that court case in South Korea but it is a case of “Sell the rumor, buy the news” in this case. There is no surprise here other than that the Korean courts could not be bought by Microsoft either. Actually, I think Microsoft is too damn scrupulous to engage in that sort of thing which is really nice actually…
Monster year for MTN coming up but the stock is already way high.
GG cannot be kept down but beware $520 gold, that may be time to pull the rug out from under the Saudis… I’m looking to exit this one at $21.85, a retest of the all time high, with a very tight .20 stop. MRB is also at a dangerously high level – I will be taking a 20% profit very happily there so above $2.20 I go with a nickle stop. If gold turns down $2, just get out anyway.
TASR should be back at the end of the month with a filed report that satisfies the Nasdaq and reversed delisting worries. The next milestone is the close of the SEC investigation. I am in on the Jun $6 calls for $1.70 on this one.
