The market has been a little choppy today but unlike yesterday, the bulls are doing a better job of holding their gains. Of course, we still have another half of trading to go and the negative divergence and light volume are creating a smoke screen for the bulls that the bears hope to take advantage of by the close.
Economic news has been light so far this week and today’s headlines showed Import Prices fell 1.0% in May, while Export Prices slipped 0.4%. April’s 0.5% decline was revised up to unchanged, while March was revised from 1.5% to 1.4% gain. The news had little impact on futures.
Wednesday’s action includes the MBA Mortgage Index at 7am; Retail Sales at 8:30am along with the latest Producer Price Index (PPI) numbers which will carry weight. After the open, Business Inventories will be posted at 10am while the weekly Crude Inventory numbers round out the docket 30 minutes later.
The Dow is working on a triple-digit gain and is up 90 points to 12,501 while the S&P is higher by 7 points to 1,315. The Nasdaq is advancing 15 points to 2,824.
We have more good news as some of our current trades are getting nice pops today. One of our call option trades is now up over 300% while we have a few put trades that could hit triple-digit returns by week’s end.
We also have another New Trade we are adding so let’s get to it. Subscribers, check the Members Area for the updates and make sure you use limit orders to get the best fills.