OPTIONSMART MORNING UPDATE: Looking for new catalysts to go higher

May 20th, 2009 at 8:21 am

OPTIONSMART MORNING UPDATE: Looking for new catalysts to go higher

1. OUTLOOK: A late selling effort caused stocks to close in mixed fashion. The session's lack of direction followed weak housing data and a pullback by financial stocks. Hewlett-Packard shares fell in after-hours trading Tuesday after the its revenue forecast disappointed investors.In another earnings report, chip maker Analog Devices outpaced Wall Street's targets and gave a bright forecast. Its shares popped 8% after hours. The market is looking for new catalysts to go higher.  

U.S.Futures point to a slightly higher open.

QQQQ chart

2. KEY DRIVERS FOR TODAY: 

  • HPQ  reported in line with Wall Street's estimates 
  • HD reported earnings that beat expectations
Breaking news:
  • The Federal Reserve to issue the minutes about the economic outlook
  • TGT is to post quarterly earnings before the open
  • Economic Recovery Advisory Board to discuss jobs, energy at first public meeting
  • Housing starts and building permits recently fell below expectations
  • Obama announced stricter fuel economy standards
QQQQ's implied volatility inched lower to 27.6
According to our estimates, the NASDAQ index has a 65% probability to close higher.
2. WISDOM NUGGETS:  Don't be a hero. Don't fight the trend. Follow the money flow.

3. TRADING OPPORTUNITY:  will be published later this week

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QQQQ Jun 31/33 Debit Call Spread:
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QQQQ Jun 31/33 Debit Call Spread:
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