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TEN Exclusive: Options Update – 7/28/10

|Includes:Barrick Gold Corporation (ABX), AIG, ARCH, AVP, CELG, CL, CQB, CVX, EXPE, FSLR, GOOG, ITT, MET, MFE, MRK, MTW, NOC, NTAP, OUTR

 The market paused again today and traded in a choppy fashion as it continued to digest the recent rally.  We continue to get better than expected corporate results with mixed to worse than expected economic results.  Today the Commerce Department reported that U.S. durable goods orders fell 1% in June versus expectations for a 1% increase during the month. The afternoon release of the Fed’s Beige Book this afternoon kept with the cautious tone of comments made by Chairman Ben Bernanke before the Senate last week, as most of the 12 Federal Reserve districts reported stagnant or slowing economic progress.

 

The S&P 500 Index managed to stay above the key level of 1,100 that we have been highlighting.  Resistance continues to be the 200-day moving average around the 1114 level. We feel that it’s healthy for the markets to pause and digest some of the big moves we’ve seen.  The market is selling off in area, on low-volume and with reason.  We wouldn’t be surprised if we catch a nice up session by the weekend.

We remain bullish.

Options 7.281

Weekly Economic Calendar:

Thursday

Friday

New Trade Idea:
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Disclosure: No positions

Stocks: ABX, ARCH, AIG, AVP, CELG, CL, CQB, OUTR, CVX, EXPE, FSLR, ITT, MET, MFE, GOOG, MRK, MTW, NOC, NTAP