The market has been expecting a rally regardless of who wins the Presidential election tonight but one thing it doesn’t expect is a race too close to call. Perhaps today’s surge in a classic buy the rumor, sell the news event, or traders wanting to get in ahead of the expected pop higher. We mentioned this morning the bulls were less than 1% away from clearing resistance while the bears were a little more than 1% away from cracking support so the seesaw is favoring the bulls at the present moment.
The Dow is up 147 points to 13,260 while the S&P is higher by 13 points to 1,430. The Nasdaq is advancing 17 ticks to 3,017 and the Russell 2000 is jumping 6 points to 825.
Although the bulls are enjoying a ride higher, they need to be careful of the fat kid getting off the seesaw. There are several more layers of resistance the bulls need to crack and the bears have been known to attack when too many people are leaning on one side of the boat.
It is too soon to establish long, or short, positions given the current environment with options for December and January because we need to see a clear trend established but we did say we would have some quick one or two-days trades for you this week. Although we haven’t gotten the pin action we have wanted for some of our setups, we do have another NEW TRADE for you today.
These options are at the same levels we bought our Taser (TASR, $8.38, up $0.24) call options that moved from 10 cents to a high of $1. We have already locked-in our TASR profits and we have high hopes on our latest recommendation. The current bid/ask is 5-10 cents and once we release the trade, Wall Street will know.
The company will release earnings on Wednesday and current estimates are calling for a penny loss. We feel there is a chance the company could breakeven for the quarter, or perhaps, come in with a profit.
Subscribers, check the Members Area for the NEW TRADE recommendation and be sure to use limit orders to get the best fills. Also, get out and vote. You cannot complain on who wins the election if you don’t vote. If you do vote and the other candidate wins, then you have all the reasons to complain. We have made it clear we would like to see Mitt Romney win so let’s hope for an upset and a Romney Rally.