12:35pm (EST)

The bulls are making a little noise today but the gains have been limited despite some better-than-expected economic news.  Initial Claims came in at 370,000 versus expectations for a print of 380,000.  Continuing Claims dropped 100,000 to 3.20 million versus a forecast for 3.27 million.  The pair of Aces being played today has helped boost Tech but the bears are holding resistance as the trading range continues.

One stock getting a nice pop today is Akamai Technologies (AKAM, $38.83, up $3.33) after the company announced a strategic relationship with AT&T (T, $33.73, down $0.18) to produce content delivery for its customers.  We have followed Akamai for a few years now and have mentioned it’s a strong takeover candidate in 2013.  They company is in the sweet spot for delivering digital content, video and web apps and is best of breed.

We correctly predicted the stock’s run to $40 but since its peak of $40.32, shares have struggled with this resistance level.  The December 40 calls (AKAM121222C00040000, $0.57, up $0.50) are up a jaw-dropping 714% on today’s surge in the stock while the January 40 calls (AKAM130119C00040000, $1.25, up $1.00) are up nearly 400%.

Strong support has been at $36 and it will be important for $38 to hold for a few weeks if shares can’t clear $40.  This area has been a brick wall for months but we are expecting Akamai to push $60 at some point in 2013.   

As we head to press, the Dow is down 3 points to 13,031 while the S&P is up a half-point to 1.409.80.  The Nasdaq is advancing 10 points to 2,984.

We have a lot more to talk about with our current trades as we prepare for tomorrow’s big news.  Subscribers, check the Members Area for the updates.