Market Higher Heading Into The Weekend

1:35pm (EST)

It has been a rollercoaster week but the bulls have been in control despite the fact the unemployment rate soared to 10.2% last month, the highest in more than 26 years. The market fell at the open but has turned positive after Wall Street filtered out the bad news and focused on the report. A closer look actually shows payroll losses continued to decline and job losses from earlier months were revised lower. This has caused some optimism but we are still in a choppy market.

Gold continues to shine as it topped $1,100/ oz. earlier today. We saw this one coming but it looks like we may have pulled out of Barrick Gold (ABX, $41.75, up $1.04) a little early. We profiled the November 40 calls (ABXKH, $2.56, up $0.70) on Tuesday when they were at $1.20 and we closed them yesterday at $1.65 for a 40% profit. These things happen but we can’t cry about a 40% return in TWO days…

There was a lot of risk holding positions open ahead of this morning’s unemployment report and we wanted to reduce our exposure because we had no idea where the market would be headed after the news. We are a little surprised the bulls have hung in there this week and they have got to be feeling good as we head into the weekend.

Currently, the Dow is up 13 points to 10,019 as we head to press. We are a little hesitant to stay long over the weekend but there is one trade we like for Monday. It is an earnings play and the company will report earnings before the bell. The stock has received a number of upgrades over the past few weeks and the last time the company reported earnings the stock jumped from $130 to $150. The stock is at $170 today and we think there is a chance it goes to $200 on Monday with a good report.

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Market Higher Heading Into The Weekend

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