Stocks took back about a quarter of the loss it endured yesterday. We got off to a nervous start but we got some things out of the way that should help pave the way for another leg higher by this market. We got some good solid earnings reports, the much speculated problems in Spain were confirmed when S&P downgraded the country, the Fed announced that they would keep rates unchanged for the foreseeable future, for once Goldman Sachs saga wasn’t the headline news and after the close Hewlett announced they were buying Palm. All positives for the market short-term. The SPX did some solid work today and the critical level before 1200 is resistance at 1194, which we think we should overtake early tomorrow. We remain cautiously bullish but aware that any correction will be quick and sharp, but these pullbacks should be short-lived. Tuesday was a perfect example. 
Weekly Economic Calendar: Thursday
- Thursday offers up the usual weekly initial jobless claims. Aetna Inc. (AET), Akeena Solar Inc. (AKNS), Colgate-Palmolive Co. (CL), ConocoPhillips (COP), Eastman Kodak Co. (EK), Exxon Mobil Corp. (XOM), Fortune Brands Inc. (FO), Kellogg Co. (K), Motorola Inc. (MOT), OfficeMax Inc. (OMX), Potash Corp. of Saskatchewan (POT), The Procter & Gamble Co. (PG), Chiquita Brands International Inc. (CQB), KLA-Tencor Corp. (KLAC), McAfee Inc. (MFE), and MEMC Electronic Materials Inc. (WFR) are scheduled to report earnings.
Friday
- Friday closes the week with an advance look at first-quarter gross domestic product, the April Chicago business barometer and the April University of Michigan consumer sentiment index. Rounding out the week’s earnings reports are Avon Products Inc. (AVP), Chevron Corp. (CVX), China Sunergy Co., Ltd. (CSUN), and Constellation Energy Group Inc. (CEG).
New Trade Idea: Buy Las Vegas Sands (LVS) May 24 Calls @ $2.35 or better: 
The gaming stocks fell back a bit this week based on profit taking. Wynn resorts will report earnings on 04/29 after the close and we think they will be solid. We should be able to ride their coattails higher with LVS which is our favorite in the sector. Use $3.60 as a target and $1.25 as a mental stop-loss. Buy PNC Financial (PNC) May 67.5 Calls @ $1.45 or better: 
It has been a very trying week for the financials and PNC has dropped to its 20-day moving average form which it should bounce. The Treasury will be selling warrants for PNC common stock on 04/29 which has also weighed on the stock. We should see a quick surge after the auction. Use $3.80 as a target and $0.80 as a mental stop. Buy Amazon (AMZN) May 135 Puts @ $ 3.30 or better: 
Amazon has broken an upward channel it’s been in since 03/10 and should fall to its 50-day moving average from here after a tremendous run. Use $6.60 as a target and $1.50 as a mental stop-loss. Open Positions: Research in Motion (RIMM) May 70 puts @ $2.35: We took profits a 49% profit on Monday as the stock reversed late in the session. DryShips (DRYS) May 6 Calls @ $0.85: Our mental closing stop was triggered this week.
