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Bulls Are All Smiles
September 3rd, 2010

9:00am (EST)

We will go over Thursday’s action quickly:

The Dow managed to tack on 50 points, or 0.5%, by the close and finished at 10,320.  The index went out on its high for the day and resistance of 10,400 held.

djia090310

The S&P 500 added a 10 spot, or 0.9%, and settled at 1,090.  The bears were trying to hold the 1,100 level, and did, but the index also went out on its highs.

The Nasdaq again led the way as it popped 23 points, or 1.1%, to close at 2,200.  This was our first level of resistance on a possible push to 2,250.

Although yesterday’s news is history, the fact the market stayed under resistance was the good news.  The bad news, if you are a bear, is that the futures are up big after this morning’s unemployment numbers.

There were some positives and negatives in the report but it favored the bulls and futures are pointing towards a strong open.  We will go over the numbers in our afternoon update but it appears the bulls are going to challenge, if not breakthrough, key resistance levels.

Dow futures are showing a 115 point pop and are at 10,424 while the S&P 500 futures are higher by 13 points to 1,103.  The Nasdaq 100 futures are up 24 points to 1,861.

bull

We have mentioned the key resistance levels to watch for; Dow 10,400, S&P 1,100 and Nasdaq 2,250.  Although these levels will get stretched, the real action won’t come until next week. 

It is going to be a busy morning but we will be watching the action to see what clues we can pick up for next week.  We will also be back with our afternoon update at 12pm today, an hour early, to bring you the latest news.  The president speaks at 10am so there is a chance the markets react to his comments. 

Early word is that he was scheduled to speak at 10am because Washington thought the unemployment numbers were going to be awful and he was going to announce another “stimulus package”.  Now, we will have to see, but if the bears see an opening they will attack back.

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Expect a Triple-Digit Dow Move on Friday
September 2nd, 2010

1:30pm (EST)

You can almost feel the tension today between the bulls and bears as the market has stayed in a tight trading range.  The major indexes are showing slight gains as better-than-expected numbers on housing and retail have provided the bulls some ammo heading into Friday’s update on employment.

DJIA 15-Minute Chart

DJIA 15-Minute Chart

The National Association of Realtors said contracts to purchase homes rose 5.2% in July after hitting a record low in June while factory orders climbed 0.1% in July. 

The monthly report on jobs will be the biggie, of course, and it will be released before the market opens.  Although there is a little hiring going on in America, the numbers are expected to indicate an unemployment rate of 9.6%, up 0.1% from last month.  The market will be counting on the private sector for growth but they only hired 40,000 workers last month. 

In corporate news, Hewlett-Packard (HPQ, $39.34, up $0.13) raised its bid to $33 a share for data storage provider 3Par (PAR, $32.85, up $0.77).  Dell (DELL, $12.40, up $0.28) had upped its offer to $32 a share in a last gasp effort to “outbid” HP but they don’t have the cash coffins to trump $33.

As we head to press, the Dow is up 2 points to 10,270 while the S&P 500 is advancing by 4 points to 1,084.  The Nasdaq is showing a 10 point gain and is at 2,187. 

We are watching the 1,075 level for support on the S&P 500 with 1,100 being a ceiling for today.  We should probably stay within that range for the remainder of the day but a break above or below these levels means somebody knows something ahead of tomorrow’s big news.

We established 3 new positions ahead of Friday’s unemployment report but we protected ourselves by going out until October with our trades.  You can bet tonight will be an uneasy night of sleeping but this is why we play the game.  Subscribers, check the Members Area for the updates.    

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MomentumOptionsTrading.com NEW TRADES for 9/2/10
September 2nd, 2010

10:40am (EST)

We have just released 3 NEW TRADES as we position ourselves for the market’s next big move.  Subscribers, check the MEMBERS AREA, now, for the updates!


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