1:25pm (EST)

The heat wave across America has effected the bulls as they remain white-hot but they were cooled following yesterday’s push to record highs.

The bulls were behind the 8-ball as soon as the market closed on Thursday as Microsoft (MSFT, $31.63, down $3.81) and Google (GOOG, $894.70, down $15.98) both missed Wall Street’s earnings estimates.  Mister Softee reported its worst quarter in a decade after missing forecasts by a whopping 9 cents while Google whiffed on earnings and revenues with both striking out and coming in below the bar.  Microsoft is breaking down like a rented mule as shares are sliding 11% but Google could hold $900 following last night’s after-hours dip near $850.  Impressive.

Surprisingly, futures were slightly higher when we hit the hay last night but were in the red by the opening bell (but not by much).  While the Tech sector may have disappointed, the Industrial stocks, like General Electric (GE, $24.68, up $1.05), came in with better-than-expected numbers that has helped offset some of the weakness.

There is a chance we get a mixed close as some of the indexes could see green before the weekend and overall, the action still feels bullish heading into next week.  We have a number of trades in play with July options expiring and with some of our current trades so we have to keep things short today although there is so much more we want to talk about.

We have already started working on our Weekly Wrap and we have another winning trade that will likely close today that will get our Track Record to 27-3 for the publication and 71-5 overall since inception.

As we head to press, the Dow is down 33 points to 15,515 and we would like to see 15,500 hold into the close.  The S&P is slipping 2 points to 1,687 and a close at current levels, or above 1,685, would be bullish for next week.  The Nasdaq is getting whacked for 31 points and is at 3,580.  The drop below 3,600 will need to be watched but if 3,575 holds the bulls should be okay.  The Russell 2000 is also down a deuce and is just below 1,050.  A close at or above this level would be a great clue for higher prices next week but a little pullback wouldn’t kill the momentum as long as 1,045-1,040 holds into the close.

We have had a tremendous week and we said at the beginning of the month our next batch of trades could be special and since late April we have been lights out.  We have been adding new trades all week and will continue to do so while protecting profits.  It is still a GREAT time to invest in options as we see volatility picking up over the next few months creating even more explosive profits.

We will be back Sunday night with the Weekly Wrap and we have another Profit Alert for the Daily on a trade that returned us 80%.  We could have additional Alerts for the Daily if we close or add a new position but if you don’t hear from us, we will see you Daily folks again on Monday morning.  Until then, have a great weekend!  (Stay cool and drink plenty of water as the heat wave continues.)