Bulls Push First Layer of Resistance

12:25pm (EST)

Futures were trading higher Monday night as we prepared for Tuesday’s open and got progressively stronger before the bell. The rest of the week, including today will be extremely busy with lots of juicy tidbits to digest.

China got the ball rolling after word spread they could start their own Cash for Clunkers program to help spur automobile sales. This gave the overseas markets a lift which put Wall Street in a good mood.

Helping Tech today is word Apple (AAPL, $568.12, up $5.83) is in the early stages of producing a new television that would work with the internet and cloud computing. We were just talking about how Apple [and Google (GOOG, $592.37, up $0.84)] needed to get off the mat as its stock has been languishing and this was good news. We showed a chart for both stocks this morning as possible option plays down the road.

Facebook (FB, $29.76, down $2.15) has fallen below $30 and doesn’t seem like it wants to get up. The options listed today and we will have more on this story in the coming days. The WEEKLY options for Facebook will list Thursday so there will be a ton of ways to play this one.

The premiums are a little jacked liked we said they would be with implied volatility coming in above 50. The Facebook June 30 puts (FB120616P00030000, $1.75, up $1.75) opened at $1.20 and have traded down to $1. The quote looks a little funny because the options just listed but get ready for a possible new trade this week on Facebook after we see how shares trade over the next few days.

Economic news is light today and May’s Consumer Confidence Index was a letdown after falling to 64.9 versus a print of 68.7 for April. The bulls shook-off the bad news and maintained their momentum at first but as we head into the second half of trading, some of the bloom has come off the rose.

The Dow is up 72 points to 12,526 while the S&P 500 is higher by 7 points to 1,325. The Nasdaq is higher by 11 points to 2,848.

We have action to take on one of our current call option trades that is showing a solid double-digit gain in a little over a week. We want to protect profits in case today’s gains fade so let’s go check the tape.

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Bulls Push First Layer of Resistance

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