2:30pm (EST) After spending the first couple of hours in positive territory, the market has given up all of its gains as all three of the major indexes have turned negative. The S&P 500 is getting hitting the hardest as it is down nearly 1%, or 10 points, to 871. Yesterday I explained how the S&P 500 rolled over and fell below its 200-day moving average. A closer look at the chart also reveals a head-and-shoulders pattern that has been penetrated. The full impact of last Thursday’s jobs losses is starting to set in and the bulls seem to be retreating. Talk about another stimulas package is also weighing on the market. The PowerShares QQQ’s (QQQQ, $34.45, down $0.08) are trading lower and the July 36 puts (QQQSJ, $1.60, up $0.10) have traded to a high of $1.80 today. We could get a “dead-cat bounce” so be careful with these if you haven’t started taking profits. There may be more room for profits in these options but start putting stops in place. American International Group (AIG, $12.88, down $0.87) is taking another pounding as it is down 7%. The July 18 puts (AIGSR, $5.75, up $1.15) opened at $4.80 while the July 15 puts (AIGSO, $3.20, up $0.67) opened at $2.80 have hit a low of $2.34. I have been mentioning the weakness in AIG and today was a good day to go out and make some money. Amgen (AMGN, $59.98, up $7.75) just couldn’t make it past $61 which is what the chart showed us this morning but the July 60 calls (YAAGL, $1.25, up $1.21) are still up 3,000%. That was not a typo. These options closed at 4 cents yesterday and opened up at 60 cents. I mentioned these BEFORE the opening bell and they have hit a high of $1.80 today. I’ll be back tonight with an update on Alcoa (AA, $9.18, down $0.23). Rick Rouse Rick@MomentumOptionsTrading.com]]>