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Positive Expectations Cont'd

Last weeks upmove may very well be attributed to short covering, but today's and tomorrows is likely a reflection of earnings positive expectations.  AA earnings beat the street setting a positive tenor on comments and outlook of increasing demand for its product.

So, while the trend remains mostly positive consider the longer term implications of issues previously stated regarding economic uncertainties.  Bernanke mentioned the need for more credit liquidity for small business as they look to stimulate and improve the labor market.  At least, Bernanke understands where the backbone of the labor market lies...maybe.

Banking regulations, "Wall Street" regulations, are just about to be passed be Congress as 2 Republican Senators have stated they will support the bill in its current form.  The impact on banking, business and labor will not be determined from months to come and considering the uncertainties these regulations will likely cause banks to continue to hold on reserves and business to refrain from hiring.  Yes, the uncertainty of whether or not a regulatory bill will be passed is no longer a part of market sentiment the likelihood that the bill will do what it's stating more likely not to happen.

Summary:  A positive tenor with AA earnings does not translate into a scenario where protective positions should be abandoned.

CTM trades:  

AAPL - a July /180 bear call was filled today.

AMZN - a July 115 short put was filled today.

Disclosure: Short term stagnant to bearishon AAPL - July 170/180 Bear call, Bullish to stagnant on AMZN 115 Naked Put