The elections were the appetizer, the Fed provided the main course and the desert is on its way. The Dow Jones Industrial Average powered ahead 2.9% last week, finishing above 11,400. All three of the major market indexes are at year-to-date highs and at levels not seen since September 2008. The desert could be served up by money managers that missed the big move this year and may spend the last two months of the year playing catch-up. That would provide the market a very nice boost.
Plenty of traders and money managers moved money to the sidelines fully expecting a “sell the news” reaction last week and that money will come back into this market as well.
We don’t think that we’re over extended yet and we remain bullish. However keep in mind that we have come a long way in a short time and whenever that happens, sharp reversals and pullbacks become more likely. Be sure to tighten your stops and look for opportunities to hedge your longs.
Weekly Economic Calendar:
Monday
- There are no major economic reports scheduled for Monday. Frontier Communications Corp. (FTR), Sysco Corp. (SYY), Warner Chilcott Plc (WCRX ), Clean Energy Fuels Corp. (CLNE), Clear Channel Outdoor Holdings Inc. (CCO), Convergys Corp. (CVG), Eagle Bulk Shipping Inc. (EGLE), LSK Solar Co. Ltd. (LDK), priceline.com Incorporated (PCLN), Silver Wheaton Corp. (SLW) and The Warnaco Group Inc. (WRC) will report earnings.
Tuesday
- The Commerce Department will report on September wholesale inventories. Ebix Inc. (EBIX), Fossil Inc. (FOSL), hhgregg Inc. (HGG), JA Solar Holdings Co. Ltd. (JASO), K12 Inc. (LRN), Solarfun Power Holdings Co. Ltd. (SOLF), Tyco International Ltd. (TYC), Starwood Property Trust Inc. (STWD), and URS Corp. (URS) are scheduled to issue their quarterly reports.
Wednesday
- We’ll get the usual weekly report on crude inventories, along with the September trade balance figures. Scheduled to report earnings are Maidenform Brands Inc. (MFB), Macy’s Inc. (M), Polo Ralph Lauren Corp. (RL), Sara Lee Corp. (SLE), and Cisco Systems Inc. (CSCO)
Thursday
- The weekly initial jobless claims report comes out on Thursday. Kohl’s Corp. (KSS), Tim Hortons Inc. (THI), NVIDIA Corp (NVDA), SunPower Corporation (SPWRA) and The Walt Disney Company (DIS) will report earnings.
Friday
- The University of Michigan will deliver its first reading on consumer sentiment during November. Agilent Technologies Inc. (A), D.R. Horton Inc. (DHI), J.C. Penney Company Inc. (JCP) and Wendy’s Arby’s Group Inc. (WEN) will report earnings.
New Trade Idea:
Buy Cree (CREE) November 55 Calls @ $1.65 or Better:
CREE made a nice move last week getting above both 10 and 20 day-moving averages and looks poised to move higher from here. Use $2.80 as a target and $.90 as a mental stop-loss.
Buy Wynn Resorts (WYNN) November 115 Calls @ $2.70 or Better:
The gaming sector remains hot and WYNN should be a leader going forward. Use $2.80 as a target and $1.55 as a mental stop-loss.
Buy American International Group (AIG) November 45 Calls @ $1.55 or Better:
The financial sector took advantage of last week’s market to make strong moves higher and AIG was a leader. We think we’ll the strong action continue form here and we’ll use $2.15 as a target and $.65 as a mental stop-loss.
Open Positions:
Oracle (ORCL) November 28 Call @ $0.90:
We hit our target and locked in a nice +83% profit.
Juniper Networks (JNPR) Nov 30 Calls @ $1.80:
Target hit for a 122% profit.
Goldman Sachs (GS) November 160 Calls @ $4.15:
Took a 69% profit on the calls.
TEN Exclusive: Options Update – 11/7/10 is an article from: 
