1:20pm (EST)

Futures were pointing towards a sluggish start this morning and we kind of had a feeling the market would trade flat today following this week’s big push up to resistance.  Company earnings have come in mixed today with disappointing numbers from some while others have shined.

Caterpillar (CAT, $105.58, down $6.02) has let the Blue-Chips down and is weighing on the Dow after missing estimates while continued concerns over the U.S. debt ceiling have resurfaced which is holding the bulls back as well.

As usual, nothing in Washington can go smooth.  The Republicans are playing hardball as the knuckleheads in D.C. failed to pass the “Cut, Cap, and Balance Act” which leaves the rest of America and Wall Street in limbo and wondering if a resolution to the debt will come down to the wire.  Of course, our leaders have said they are going to work overtime this weekend and they should for the $172,000-a-year salaries they get.  Hopefully, after spending 48 hours behind closed doors, the zombies can come up with a game plan by Monday morning.

As far as good earnings news, Rambus (RMBS, $15.65, up $0.70) is having a robust day, up 4%, after confessing their results to Wall Street after Thursday’s closing bell.  Shares were up near $16 in after-hours last night which carried over into today’s trading as the stock has also broke through serious resistance levels.

Although Rambus reported a loss for the quarter, the company appears to be turning the corner towards profitability and could be due for a big payday here shortly.

The computer memory giant reported a 2Q loss of $10.6 million, or $0.10 a share, which was better than last year’s quarterly loss of $12.5 million, or $0.11 cents a share.  There aren’t too many Wall Street who cover this stock but the ones that do had penciled in a loss of 12 cents a share for the company.

Revenue zoomed to $66 million, up from $39 million in the year earlier period.  However, Rambus made jaws drop when they said current revenue for 3Q would come in at a range of $91-$96 million, which was 50% higher than the forecast for $60 million.

The real story with Rambus though is this.  Wall Street has lost interest in the stock and analysts have been like rats on a sinking ship after jumping off due to ongoing litigation concerns.

Well, to make a long story short, this is the type of story we look for when we are trading options.

Wall Street left Rambus for dead.  We are glad there is little analyst coverage and we are surprised there haven’t been a few “upgrades” on the stock.  Not to worry, the less they know the better but we have a feeling they will be following the Rambus story shortly.

Our subscribers know exactly what we are talking about as we have been discussing this name inside our Members Area since mid-June.  We have followed the company for over a decade and “We’re your Captain…yeah, yeah, yeah…yeah.”

As we head to press and an anxiously awaited weekend, here is how we look.

The S&P is up 2 points to 1,345 while the Nasdaq higher by a double-deuce, or 22 points, to 2,856.  The Dow is lower by 28 points to 12,696 with Caterpillar accounting for 45 points to the red.  If it weren’t for CAT, the Dow would be up.

We will be back Sunday night with our Weekly Wrap and until then, have a sweet weekend!