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Debt Fears Pushed Aside

Bad news first.  Iceland credit rating was downgraded by Standard and Poors causing a negative reaction to the markets trend.  The trend,however, recovered and ended the day on positive notes from Consumer Confidence and earnings data.

Good news. Continuing with the "reasons to buy",the market trend remains upward, albeit slight. Along with positive Consumer data, housing got a boost on better house values due to "job optimism".  Concerns regarding debt issues are overlooked as expectation of an improving economy is inspiring confidence by consumers as per the Governments Consumer Confidence data.  Tax revenues are up in 15 states including California which has State officials hopeful.  The increase tax revenues stem from improved business base and increased taxes assessed to producers - tax revenue increases are not the result of increased income taxes due to job growth.

Geopolitics may continue to insert itself in market sentiment as the EU/Greek issue remains an issue.

Summary:  Short week, expect volume to be low and slow tomorrow with the trend likely to continue as is.

CTM trades
:

APOL - after reading through there earnings transcripts I have to conclude that share value will remain flat.  Earnings numbers were positive, but due to legal costs of an lawsuit, which has not been settled and is pending, net income was flat.  Concerns about Government regulations way on fundamentals, but the demand for education remains strong.  APOL's outlook seemed cautious and while they are buying back shares with about 800 mil still available, don't expect any surge in buying as the average cost per share at which they've repurchased is $60.00.  There is more bearish pressure that upside pressure and 65 seems to be holding well as resistance.

The trade will be a short term Bear Call using April's options at the 65/70 strikes and will be placed at a limit order of .60 cents.  Time decay is an ally and expectation is that share value will remain below 65 through Aprils expiration date, in spite of recent upgrades.





Disclosure: Short on APOL through April