OPTIONSMART MORNING UPDATE: Poised to extend rally

May 29th, 2009 at 8:18 am

OPTIONSMART MORNING UPDATE: Poised to extend rally

1. OUTLOOK: The tech sector digested economic data and managed to move higher. Microsoft was a primary leader in the Nasdaq amid reports that the company is no longer in serious discussions with Yahoo. Dell posted a steep drop in first-quarter profit after the closing bell, but the decline wasn't as bad as the market had expected, which helped to boost the stock after hours.
The technical chart looks bullish.

2. KEY DRIVERS FOR TODAY:

MSFT: netbook prospects encouraging.
MSFT is no longer in serious discussions with Yahoo

Dell reported Q1 sharp drop in profit as PC sales sink 34%, missed estimates, but pleased the market after hours..
Global chip sales to fall 22% in 2009, experts believe. Estimate is slightly better than previous forecast (-24.1%), but outlook still cloudy
MRVL posted Q1 fiscal loss, stung by a sharp drop in sales

QQQQ's implied volatility stepped down to 28.9

According to our estimates, the NASDAQ index has a 80% probability to extend rally today.

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OPTIONSMART MORNING UPDATE: Poised to extend rally