Stocks continued their climb higher right from the opening bell today and although we closed off of the highs, the market did put in some serious work and we are still on track for 1200 on the SPX by the end of the month.
Today we had a strong mix consisting of strong economic data from China, stronger than expected earnings reports from some major companies and the aftereffects of yesterday’s release of the Fed Minutes.
The VIX did spike during the session today but was quickly reined in as the bulls demonstrated their continued eagerness to buy stocks. A very positive sign. However, a few sectors chose not to participate in today’s rally and chief amongst them was the financial sector. Concerns about the foreclosure scandal continue to weigh on them. Once that mess gets cleared up, all systems will be go for a year-end rally.
We still feel that this move has more room to the upside and we remain bullish into the weekend.
Weekly Economic Calendar:
Thursday
- The Labor Department will release the weekly jobless claims figures, along with the September producer price index. The Commerce Department will report on the August trade balance. In the earnings spotlight will be Safeway Inc. (SWY), Advanced Micro Devices Inc. (AMD), Google Inc. (GOOG), J.B. Hunt Transport Service Inc. (JBHT), and The Progressive Corp. (PGR).
Friday
- Friday will be busy again, with September data available on the consumer price index and retail sales. The New York Fed will report on manufacturing in the region for October, while the University of Michigan will offer up its first reading on consumer sentiment in October. Gannett Co. Inc. (GCI), General Electric Co. (GE), Infosys Technologies Limited (INFY) and Mattel Inc. (MAT) will report earnings.
New Trade Idea:
Buy Broadcom (BRCM) November 37 Calls @ $2.10 or Better:
Tech continues to act well and BRCM is ready to break out to new highs. Volume remains very positive. Use $3.50 as a target and $1.05 as a mental stop-loss.
Open Positions:
Oracle (ORCL) November 28 Call @ $0.90:
The techs are beginning to stir and Oracle looks poised to break out of this recent consolidation. Continue to hold. Use $1.65 as a target and $0.45 as a mental stop-loss.
Wells Fargo (WFC) November 26 Call @ $1.50:
Continue to hold. Use $2.60 as a target and $0.85 as a mental stop-loss.
Buffalo Wild Wings (BWLD) November 50 Call @ $2.30:
Continue to hold. Use $4.60 as a target and $1.30 as a mental stop-loss.
Juniper Networks (JNPR) Nov 30 Calls @ $1.80:
Continue to hold. Use $4.00 as a target and $.90 as a mental stop loss.
TEN Exclusive: Options Update – 10/13/10 is an article from: 
