9:00am (EST)
“When everybody thinks alike, everyone is likely to be wrong.” – Humphrey Neill
There has been so much talk about a market pullback this week that we thought we would use today’s quote to put things in perspective.
The talking heads are telling you there are chinks in the bulls armor and the bears had every opportunity to take the market lower this week. However, going into today’s session, the Dow is EXACTLY where it closed at last Friday. So what we do today will count for the week.
Yesterday looked pretty bearish but the retail same-store sales helped put a floor on the downside. A surprise increase in initial jobless claims initially weighed on the market after the Labor Department said first-time filings for unemployment benefits unexpectedly jumped by 18,000 last week but things got better.
After opening lower, the bears took the market to its lows within the first 30 minutes of trading but that was it. By lunchtime, the bulls were in control and pushed the market into positive territory for the rest of the day.
The Dow enjoyed a 30 point gain, or 0.3%, to close at 10,927. The index touched a high of 10,949 but still remains just a 73-point session away from breaking 11,000. It would be hard for us to “short” the market here because we still believe the Dow can trade 11,000 before “correcting”.
The S&P 500 held exactly at 1,175 and finished with a 4 point pop, or 0.3%, to close at 1,186. This was a sign to us that the bulls will be around next week to fight. Meanwhile, the Nasdaq added 6 points and went to bed at 2,436.
Next week is a HUGE week for earnings and Alcoa (AA, $14.87, up $0.13) will officially kick-off the earnings parade on Monday. Intel (INTC, $22.31, down $0.14) announces earnings on Tuesday; Wednesday we hear from JPMorgan (JPM, $45.76, up $0.44); Thursday is Google’s (GOOG, $567.49, up $3.95) turn and Friday General Electric (GE, $18.56, up $0.06) briefs Wall Street – not to mention April option expiration day.
The way we see it? We have one bull on our right shoulder and one bear on our left shoulder. Either all of the good news is priced into this market or we easily set new highs.
For today, futures are pointing towards a higher open as the Dow futures are showing a 20 point pop and are at 10,903 while the S&P futures are up 3 points to 1,186. Nasdaq 100 futures are higher by 5 and are at 1,185.
We will be back at 1pm with the afternoon update…
Tags: AA, DJIA, GE, GOOG, INTC, JPM, option picks, option signals, options alerts, stock options trading
This entry was posted
on Friday, April 9th, 2010 at 8:06 AM and is filed under Market Analysis, Market Commentary.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
Get RSS Feed
Bulls Looking To Win The Week
9:00am (EST)
“When everybody thinks alike, everyone is likely to be wrong.” – Humphrey Neill
There has been so much talk about a market pullback this week that we thought we would use today’s quote to put things in perspective.
The talking heads are telling you there are chinks in the bulls armor and the bears had every opportunity to take the market lower this week. However, going into today’s session, the Dow is EXACTLY where it closed at last Friday. So what we do today will count for the week.
Yesterday looked pretty bearish but the retail same-store sales helped put a floor on the downside. A surprise increase in initial jobless claims initially weighed on the market after the Labor Department said first-time filings for unemployment benefits unexpectedly jumped by 18,000 last week but things got better.
After opening lower, the bears took the market to its lows within the first 30 minutes of trading but that was it. By lunchtime, the bulls were in control and pushed the market into positive territory for the rest of the day.
The Dow enjoyed a 30 point gain, or 0.3%, to close at 10,927. The index touched a high of 10,949 but still remains just a 73-point session away from breaking 11,000. It would be hard for us to “short” the market here because we still believe the Dow can trade 11,000 before “correcting”.
The S&P 500 held exactly at 1,175 and finished with a 4 point pop, or 0.3%, to close at 1,186. This was a sign to us that the bulls will be around next week to fight. Meanwhile, the Nasdaq added 6 points and went to bed at 2,436.
Next week is a HUGE week for earnings and Alcoa (AA, $14.87, up $0.13) will officially kick-off the earnings parade on Monday. Intel (INTC, $22.31, down $0.14) announces earnings on Tuesday; Wednesday we hear from JPMorgan (JPM, $45.76, up $0.44); Thursday is Google’s (GOOG, $567.49, up $3.95) turn and Friday General Electric (GE, $18.56, up $0.06) briefs Wall Street – not to mention April option expiration day.
The way we see it? We have one bull on our right shoulder and one bear on our left shoulder. Either all of the good news is priced into this market or we easily set new highs.
For today, futures are pointing towards a higher open as the Dow futures are showing a 20 point pop and are at 10,903 while the S&P futures are up 3 points to 1,186. Nasdaq 100 futures are higher by 5 and are at 1,185.
We will be back at 1pm with the afternoon update…
Tags: AA, DJIA, GE, GOOG, INTC, JPM, option picks, option signals, options alerts, stock options trading
This entry was posted on Friday, April 9th, 2010 at 8:06 AM and is filed under Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.