Wow, what a great day!
I really lucked out by taking my Monday advice and scooping up the BTU $55s this morning instead of overpaying yesterday. The action could not have gone better!
http://finance.yahoo.com/q/bc?s=BTU&t=1d
Needless to say my XOM adventure on the call side ended well too!
After giving us a worry in the afternoon the markets just rock and rolled right over resistance with all the indices comfortably above their lines. But it will be up to today’s earnings reports to continue this rally, so far they look pretty good!
Oil flew over $71 and, more importantly, natural gas went back to $8 before pulling back slightly but the markets just did not care! We had low inflation in the morning, which started the rally then a Fed Governor said they are close to done and then the minutes made it look like they were, in fact, very close to done so the rally continued right into the bell.
Gold finished at $623 while copper is threatening $300 as the dollar loses another point against the Euro (and will drop further if our Fed stops just as the BOJ starts).
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MOT missed by a hair so we will see where that leads and if Yahoo and TXN can’t deliver we can expect about half of today to be erased very quickly.
AMGN missed a bit too! Being severely punished for it.
IBM beat on earnings, thank goodness! That cost cutting is paying off because revenues are way down… I don’t think these numbers will do them too much good as it shows the company moving towards a low growth model but it’s not the disaster people were worried about.
TXN had a huge beat! I love these guys!!!
Yahoo had great top line revenues but earnings were just in line but not the disaster people feared so expect Yahoo and Google to be up big tonight!
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No action on DELL and now there are 71,000 open $30 calls so it will have to be something amazing to put all those people in the money…
TGT made some improvement today and the Jul $52.50s nudged up to $2.10 (up 5%).
DHI went completely the wrong way in the morning but rewarded the faithful with a 2.25% gain into the close. The May $35s finished at $1.20 (up 25%).
http://finance.yahoo.com/q/bc?s=DHI&t=1d
MER also had a poor start but recovered at the end but the May $80s finished down a dime at $1.50.
UNH can’t get past the $1Bn they bonused the CEO. It will take time for this to blow over but the guy did add $35Bn of market cap to the company in the past 2 years. I feel the same way about Raymond at Exxon, the man earned it! Now I really love the May $55s at .40 but I will wait until they get to .60 before I risk it.
WEN looked like investors want to break up the company but it only gained a buck so I have a wait and see attitude.
CNI was a home run as the May $50s are practically in the money now at .80 (up 450%)! The Jul $47.50s ran up to $2.90 (up 45%).
AQNT also had a very nice day and the Jun $25s are already at $2.05 (up 15%) but this will still be a good play as Yahoo is showing the strength in the ad market we were expecting.
XLNX also had a fun day and will zoom on the TXN news. The Jun $25s are just getting warmed up at $2.85 (up 35%).
PBG went completely the wrong way and the Sept $30s dropped to $2.45 (down 15%). I can only suppose that it is too dull to compete with tech and commodities for investment dollars.
JNJ plodded along to a .8% gain which is just fine for a $173Bn company. Even so the May $60s finished up a nickle at .40.
DIS flew up today and the May $27.50s are now well in the money at $1.20 (up 30%).
GLW recovered nicely and the May $25s are back even at $2.75.
FLEX tacked on another 2.5% today, should have paid up when we had the chance!
