9:00am (EST)

The bulls tried to get some momentum going on Tuesday but ran into trouble after stretching resistance.  The bears got a few licks in before lunch following comments from Germany’s Angela Merkel who said they will not support joint-euro bonds.  We talked about this last Monday and said we would expect Germany to throw a fit and how they should go back to their own currency.

Her exact words were “I don’t see total debt liability as long as I live”.  Those do not sound like negotiating words ahead of this week’s European Union summit which dashed Wall Street’s enthusiasm for a productive meeting.  The market turned south on the news and slipped about 0.5% before the bulls recovered.  Merkel’s comments overshadowed the Richmond Fed Manufacturing Index which came in at -3 versus a forecast for a reading of 2.

The major indexes reversed course once the overseas markets closed and traded to session highs going into the final hour of trading.  The bears were able to keep the gains contained as resistance held by the bell.


If you are not a subscriber but would like to read more please click here.  We are one of the fastest growing stock options trading advisors on the internet and we are off to a unprecedented start for 2012.  We offer 2-3 powerful call or put option trades each week (depending on market conditions) aimed at triple-digit returns for our Daily newsletter and our Weekly Wrap Covered Call Portfolio strides for double-digit returns on a monthly basis.  Together, we are 100-21 and we doubt you will find a hotter option trading newsletter.