Bulls Running To Start The Week

3:00pm (EST) The bulls got the ball rolling today after a positive ISM number this morning has put Wall Street in a buying mood. The Institute for Supply Management said its service index rose to 50.9 in September from 48.4 in August. The Street had expected a reading of 50, and anything over that is considered growth. Below 50 is considered contraction. The rally has also been fueled by positive comments on the Financial stocks as Goldman Sachs (GS, $185.16, up $5.55) upgraded the large banks. Bank of America (BAC, $16.81, up $0.47) is up 3% and is looking attractive at $16-$17. This is easily a $25 stock by early 2010. As a result, the Dow is currently up 136 points to 9,623 while the S & P 500 is up 17 to 1,042. The Nasdaq is up 26 points to 2,074. Exxon Mobil (XOM, $67.62, up $1.04) was looking good at $66 on Friday and I have mentioned this support area several times over the last few weeks. Oil took a hit last week but has gained 76 cents to $70.71 today. Some are calling for oil to dip to the high $50’s while others are expecting a run to $85-$90 over the short-term. I’m not sure if there is an option trade on XOM just yet but it is getting interesting and I would expect shares to make a run back to $70 over the next couple of weeks. Research In Motion (RIMM, $65.87, up $0.45) also looks like it has bottomed and has traded as high as $67.74 today. I think there is a trade on this one but I’m not quite ready to pull the trigger. RIMM was on our radar Friday but the waters were too muddy for us to make a play. However, I may add some insurance to the trade which is why we are holding off. One trade we did take today was Pepsico (PEP, $60.79, down $0.11) and we got some great entry prices by waiting until after the market opened. Our other trades in Abercrombie & Fitch (ANF, $30.40, down $0.22), Citigroup (C, $4.64, up $0.12) and Imax (IMAX, $9.60, up $0.30) are also heading in the right directions today. I will be back in the morning with the complete updates and we will be back on regular schedule on Tuesday. Subscribers, if you have not read the Pepsico trade for today, you can check the Members Area for this morning’s update. Rick@MomentumOptionsTrading.com]]>

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Bulls Running To Start The Week

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