OPTIONSMART MORNING UPDATE: Set to open higher

1. OUTLOOK: An upbeat profit forecast from Lowes, as well as an upgrade of Bank of America, encouraged investors to step back into the market. Market players are trying to determine if last week's pullback was a temporary dip on the way up, or a sign of more weakness to come. HPQ is due to report its April qtr results today, after the market close. MRVL upgraded and target raised to $14. QQQQ implied volatility plunged below the 30 level. The tech sector is set to extend rally.

2. KEY DRIVERS FOR TODAY:

Bank of America upgraded to Buy at Goldman Sachs,
Goldman Sachs and Morgan Stanley have formally asked the Federal Reserve for permission to repay a combined $20 billion in federal bailout money

Breaking news:

April Housing Starts and Building Permits (527K and 530K expected) to be announced today;
Obama speech on fuel economy standards today
HPQ earnings release after market

American Express to cut 6% of its global workforce,
Big tech companies (like Google and Apple) are likely targets for the Justice Department's antitrust crackdown,
PC market unlikely to recover later this year, J.P. Morgan analyst belives, seeing rising inventories and little demand from Windows 7

QQQQ's implied volatility inched lower to 28.1

According to our estimates, the NASDAQ index has a 70% probability to close higher.

2. WISDOM NUGGETS: Hope, fear and greed are not strategies: they are emotions. Simple emotions are not an effective strategy. Positive emotions could cause us to fail to apply riskprecautions. Negative emotion could cause us to hesitate.

3. TRADING OPPORTUNITY: will be published later this week

4. OUR FREE MONTHLY TRADING RECOMMENDATION AUTO-TRADABLE WITH OUR PARTNER BROKERAGES: will be published in June.

5. Our yesterday's Momentum Plays trade:
QQQQ Jun 31/33 Call Spread:
Bought on 5/14/09 @1.36 and 5/18/09 @1.50 with a 10.3% gain in 4 days!We monitor the market, identify 'ready-to-move" stocks, select appropriate trading vehicles and get an average 11.2% gain in 8 days.

2009 Track Record

% of Winning Trades:	100% (18 of 18)
Ave. Holding Period:	8 days
Ave. Gain per Trade:	11.2%

Open the detailed track record since 2003 for more details.

Subscribe to our "Momentum Plays" Picks and save 25% on recurring subscriptions by entering coupon code AD2A during checkout (expires on May 20, 2009). New subscribers only.

6. Our most recent QQQQ Enhanced Portfolio trades:
QQQQ Jun 31/33 Debit Call Spread:
Bought @1.39 on 05/13/09 and sold @1.57 on 05/18/09 with a 12.9% gain in 5 days!

QQQQ Jun 31/33 Debit Call Spread:
Bought @1.45 on 05/01/09 and sold both positions @1.62 on 05/06/09 with a 11.7% gain in 5 days!

QQQQ Jun 31/33 Debit Call Spread (partial fill):
Bought @1.45 on 05/01/09 at 11am and sold @1.60 on 05/05/09 with a 10.3% gain in 4 days!

QQQQ Jun 31/33 Debit Call Spread (partial fill):
Bought @1.45 on 05/01/09 at 10am and sold @1.60 on 05/05/09 with a 10.3% gain in 4 days!

INTC Jun 12/15 Debit Call Spread:
Bought @2.34 on 04/24/09 and sold @2.61 on 04/30/09 with a 11.5% in 6 days!

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