The $125 billion Spain Bank Aid has turned into a temporary bank aid that Wall Street isn’t buying as the market is trading lower heading into the second half of trading. Futures were showing a strong open when we hit the rack last night but were cut in half before the opening bell.
We mentioned last night and again this morning this news/ euphoria would be short-lived as investors have already turned their focus towards Sunday’s Greek elections.
The rally got off to a good start but lost momentum about 30 minutes after the open as the major averages turned negative.
Arena Pharmaceuticals (ARNA, $7.19, up $0.57) is doing well despite the overall market pullback and has broken through strong resistance at $7. Shares have traded to a high of $7.23 which is a new 52-week high. We have been saying shares have a shot at double-digits by the end of June and we have 2 current option trades showing triple-digit profits.
The call option trade for our Daily is rapidly approaching a 300% gain while the covered call trade for our Weekly Wrap should get our conservative traders a 117% return by mid-July if shares hold current levels.
As we head to press, the Dow is showing a decline of 37 points to 12,517 while the S&P 500 is off by 4 points to 1,321. The Nasdaq is down 10 points to 2,848 and is below the 2,850 level.
We have another New Trade we are recommending today as we continue to build small positions near resistance levels. Subscribers, use limit orders to get the best fills and we will be back in the morning with our next update.