• 	OPTIONSMART MORNING UPDATE: Boosted by housing and autos
  1. OUTLOOK:  The tech sector managed an advance at the end of a choppy session after a positive housing report and a series of better-than-expected auto sales reports gave investors some optimism. managing an advance at the end of a choppy session after a positive housing report and a series of not-as-bad-as-expected auto sales reports gave investors some optimism. Applied Materials stated that there will be more failures in the semiconductor equipment sector amid declining customers. Though there weren't any primary leaders, gains were still respectable and broad-based. We see more upside in the coming days.
  2. KEY DRIVERS FOR TODAY:  A smaller-than-expected decline in auto sales 0.5%;  A positive housing report: pending home sales jumped 6.7%; Tim Geithner said China has confidence in U.S. efforts to revive the economy; An index of the U.K. services sector expanded for the first time in 13 months. ADP's estimate of May employment, due at 8:15 a.m.  April factory orders at 9 a.m. as well as the ISM non-manufacturing gauge, due around 10 a.m.   QQQQ's implied volatility inched lower to 27.6 According to our estimates, the NASDAQ index has a 65% probability to close higher today
  3. OUR RECENT  "QQQQ ENHANCED PORTFOLIO" TRADES: HPQ Jul 32/34 Debit Call Spread: Bought @1.30 on 05/20/09 and sold @1.44 on 06/01/09 with a 10.8% gain in 12 days! INTC Jun 14/16 Debit Call Spread: Bought @1.51 on 05/04/09 and sold @1.67 on 06/01/09 with a 10.6% gain in 28 days! QQQQ Jul 32/34 Debit Call Spread: Bought @1.46 on 05/28/09 and sold @1.62 on 06/01/09 with a 11% gain in 4 days! Why QQQQ Enhanced Portfolio: more diversified (includes not only QQQQ option spreads) individually designed (we email portfolio management recommendations) more frequent (5-6 per month) "high momentum" picks average 2009 gain 13.8% in 11 days 2009 "QQQQ Enhanced Portfolio" Performance  Click on the chart to see the Track Record in pdf format % of Winning Trades: 100% Ave. Holding Period: 11 days Ave. Gain per Trade: 13.6% Annualized Return 336.4% Actual gain in 2009 (Jan -May) 140.2% Initial Capital as of 1/1/09 $100,000 Portfolio Value as of 06/01/09 $240,166 Learn more about our "QQQQ Enhanced Portfolio" service!
  4. TRADING OPPORTUNITY:  Buy QQQQ on weakness.
  5. OUR FREE MONTHLY TRADING RECOMMENDATION AUTO-TRADEABLE WITH OUR PARTNER BROKERAGES: to be published  in June. Our most recent FREE pick has delivered a nice 11% gain just in 8 days!  It is absolutely free. Open your brokerage account, select OptionSmart as an newsletter publisher and Free Picks as a service. You will have our free monthly pick auto-traded. That's it!  You will like it and switch to our paid service very soon...
  6. WISDOM NUGGETS: Bulls live above 200-day moving averages, bears live below and try to eat up all rally attempts. Big volumes kill substantial price moves.
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  June 3rd, 2009 at 8:25 am

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