Bulls Going For Hat Trick

1:10pm (EST)

The bulls are looking to end the week on a high not as they have pushed the market higher for the third straight day. The interesting thing about today is that the dollar is higher. We have mentioned how the market has trended higher on a weaker dollar and that Wall Street has been worried about the “reversal trade”. Basically, it means that they believe once the dollar started to rebound the market would head lower. Well, we aren’t seeing that today and we have talked about how overblown this theory may be.

Of course, anything can happen but our end-of-year target for the Dow is 10,800. The Dow is currently at 10,418, up 12 points, so that would mean we are looking for another 400 points. That might be a reach for the bulls and next week could get interesting as there a number of key events we will be watching.

Gold is at a one-month low while oil is at a two-month low. The yellow metal is down another $10 to $1,117/ oz. while “black gold” is down 54 cents to $70 a barrel.

Well, it didn’t take long for Wall Street to come out with a rating for AOL (AOL, $23.45, down $0.07). Sanford Bernstein came out with an “Outperform” rating for yesterday’s IPO. We followed the company when it traded in the 90’s…that would be the 1990’s, but can’t see the logic in slapping an “Outperform” rating on a company Time Warner (TWX, $30.52, up $0.07) was dying to get rid of.

Elsewhere, Research In Motion (RIMM, $63.80, down $2.00) has been all over the map and bets are being placed on if the stock is either going to test its 52-week high of $88 or its recent low of $55. We have an option trade waiting in the wings Monday morning for this one…

It is a strangle option play and we think it has a chance of hitting a triple-digit return. The company will announce earnings next Thursday AND the December options expire the following day. Folks, the last time RIMM announced earnings the stock dropped from $82 to $68. If you are not a current subscriber, signup this weekend as we think this one trade could bring some holiday cheer.

We have updated our current trades before we head out for the weekend. We will be back Sunday night with the Weekly Wrap…

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Bulls Going For Hat Trick

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