Japan was open yesterday and our markets went up.
They are open again today, so we'll see how my premise holds up into their 2-day closing tomorrow. China is already closed (not Hong Kong) for the week, and Europe gets back to work this morning and looking strong already (7:30).
Today's market goose will be provided by MasterCard Inc. (NYSE:MA), where we picked up the June $120s for $2.50 on Monday. We'll be regretting the June $110 puts at $2.90 as they had HUGE (+70%) numbers, beating estimates by 36%. After consolidating at $110 since November it will be interesting to see where this one ends up. If the American consumer is truly dead, they must have on-line shopping in the casket!
Not a whole lot going on in the international markets the day after May day, so it's up to U.S. to lead the way:
If we can only turn those black boxes green -- we will be back in party mode. We really need a good day out of the transports, but that will be up to oil and whether we can keep it below the $65 level this week. Inventories are out a 10:30 and ZMan notes the crack spreads are leveling off which should put pressure on refiners Tesoro Corp. (NYSE:TSO) and the majors. Zman still likes Valero Energy Corp. (NYSE:VLO), but I'm looking for a breakdown as demand is clearly slipping in a pattern that gave us a 5% correction in the oil patch last May.
Having been badly burned by refinery fires, I'm a little shy about jumping right in with the shorts -- but there are a lot of tempting candidates if we can get past this inventory, so stay tuned.
Happy Trading put up a great monthly review yesterday, and it's well worth checking out his charts over at Wang's World. Our chart of the day yesterday was the S&P, which must hold 1,485 today, but today we are ignoring all that as we will hopefully be lining up another round of Google (NASDAQ:GOOG) plays, which gave us a 96% return last month. Does this chart look worth another spin? We'll decide in the intra-days!
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