12:00pm (EST)

We mentioned the first trading of the second quarter can be bearish if it falls on the day after Easter but overall the month of April is usually strong, especially for the blue-chips as the Dow has averaged a 2% gain since 1950 for the month.  True to form, the market is pulling back as mixed economic news has curbed Wall Street’s enthusiasm to start the week.

Construction Spending came in above forecasts, rising 1.2% in February, versus expectations for a 1% pop.  Meanwhile, the Institute for Supply Management (ISM) Survey fell to 51.3% for March from 54.2% in February.  A reading above 50% indicates expansion so the number wasn’t all that bad although it disappointed the bulls as they were looking for a higher reading.

The pullback has been mild but it has had an effect on a couple of our option trades.  Of course, the outcomes were great as we locked-in profits of 128% and 58%, respectively, on 2 more call option trades.  We also have two more covered call trades for our Weekly Wrap that could be closed this week for double-digit gains.

We still have a few remaining trades we are trying to get through as we wind down the last of the batch from January, February and March.  We are excited about the new trades we will be opening for May and June and while it is too early to say if they will be put options, we do see volatility picking up and it remains a stock picker’s market.

As we head to press, the Dow is down 18 points to 14,560 while the S&P 500 is lower by 7 points to 1,562.  The Nasdaq is off by 21 points to 3,246.

We will have more to chat about tomorrow but for now, let’s go ring the register on a few more big winners.  Subscribers, check the Members Area for the updates and we will be back in the morning with a full report.