Thursday Morning

Today will be a great example of why you shouldn’t hold current oil options overnight! BHI had very good earnings and if that doesn’t lift the service sector nothing will! This is one of those typical engineered reverses where analysts start coming out bullish on oil in order to stop a slide. The inventory numbers were so atrocious for oil bulls that I very much doubt they can keep it over $58. If we are lucky, we will get a morning like yesterday where suckers come in and buy so we can move in for the kill when Valero gives us the signal. Watch SLB and HAL for confirmation in addition to the usual Rule indices. Hopefully we will have a Nasdaq led rally today, that would be ideal. HP’s earnings were great and, if that doesn’t lift tech, nothing will. Backing that up with a nice Dell report tonight and we could have a heck of a close to the week. Dell’s Mar $32.50 for .80 are a nice play. Today is a great day to get into our tech positions in general but don’t overcommit into the weekend, there are lots of quick 20%+ trades on our list, it will be nice to wake up Tuesday (no market Monday) with cash after the long weekend so we can assess the situation! ====================================== I have to leave this morning so not much to say but a few quickies: MER is lagging the other financial and has a great deal with Black Rock so I really like the Mar $75s for $2. XMSR is looking like a disaster. Will break the 5% rule today. Below $23, there will be little support to $20 and the Mar $22.50 puts are just $1 but not unless the stock moves strongly below $23. SIRI Mar $6s are way too cheap at .40 but a huge gamble. XMSR’s troubles were caused by all the money they had to spend to fend off Sirius’s market gains. AMZN may be coming out of its depressive phase so the Jan $35s are nice for $8 if you sell the Mar $40s for $1 (13%). You can just buy the Mar $40s but this is a dangerous stock. DCX’s sound good but were actually bad. This would be a great opportunity but I think the Europeans will be all over this before our markets open. GM should get a boost off DCX’s troubles but I’d wait until options expire on this one. GOOG thinks it’s part of the tech rally. We’ll see if that holds up! NTAP had a huge beat as well, too late to get in this one. ===================================== Once the Dow and Nasdaq hit our targets I will get very comfortable with this rally – I hope your trading day goes well!