9:20am (EST)

Futures are pointing towards a higher open this morning despite a couple of iffy economic reports.  The Dow futures are up 60, Nasdaq – 13, while the S&P futures are up 7.  Though still up, futures pulled back slightly following the the just released Advance Retail Sales Report for July.

The report showed a 0.1% decrease, which missed the 0.8% increase that was widely expected by Wall Street.  Excluding autos, sales were down 0.6% in July.  The “worry” here is that the “cash for clunkers” program is taking away from other purchases.  Meanwhile, initial jobless claims for the week jumped 558,000 versus a forecast of 554,000.

This has been a tough tape to read folks but I do think the market is climbing a wall of worry.  I’m okay with that but I’ve been successful because I normally have a good read on the market.  There are times though that I still get “faked out” but overall I can spot the trend. 

Having said that, Bank of America (BAC, $15.93) is up 62 cents in pre-market trading on news that the hedge fund boys have been buying the stock.  That’s great news but realize they were in at much lower prices.  Everybody is rushing out this morning to buy the stock and it should benefit those of you who may still be in the BofA trade.

I pretty much nailed it on the direction of the stock but I did get nervous before the Fed announcement.  However, I still think we get a scare from the bears before too long.

Rick@MomentumOptionsTrading.com