Miday update…Ben Bernanke is speaking at noon today and the Dow is currently up 11 points to 7,412. It has been a choppy session as traders appear nervous about going long or short before the weekend. We aren’t getting to much news right now and it looks as though the Dow is slipping.
After such a huge run, the financial stocks are selling off again after getting one last pop on Thursday’s open. Investors seem to be taking a little off the table and I’ve been warning you all week to follow suit. Wall Street still has no idea what these banks are going to earn and first quarter earnings season is right around the corner. We are going to continue to see wild price swings on the financials so there will still be opportunities to trade them.
As traders roll out of financials, they seem to be putting money to work in commodities and oil. There is also a little buying in Tech as IBM (IBM, $94.41, up $1.75) is having a sweet day. The April 100 calls (IBMDT, $1.60, up $0.45) are up 40% and it looks like I pulled the trigger a little early on that one.
Today is quad-triple option expiration so there is a battle on where stocks will end up at as bulls and bears battle key strike prices for the Dow’s components.
Bernanke is now live and the Dow has inched up another couple of points. It ought to be an interesting afternoon and I’ll be back on Sunday with an update. With the weekend here, send me your emails on any comments or questions you may have on the market or on options. I’ve got some free time so I will answer as many as I can. If you haven’t signed up for the Weekly Wrap, enter your email on the right of this page to get the newsletter delivered in your inbox.