12:15pm (EST)
Futures were strong when we started our research this morning on news Libyan leader Moammar Qadhafi was throwing in the towel. We usually like to follow the overseas markets before the suns shines to catch up on news that could affect the US markets and futures were up 0.5%. Although the reports haven’t been confirmed, yet, it appears that Qadhafi is negotiating a deal to get him and his family out of the country if he steps down.
Oil was also reacting to a report OPEC was scheduling a group huddle to talk about increasing production but that water-cooler talk died down when they said they had no plans for a “special” meeting. We mentioned this morning the continuing inverse relationship between oil and the market and that theme is playing out again today.
Oil has dropped below $105, down nearly $1, and the bulls have pushed the market to session highs as we head to press.
The Dow is showing a nice triple-digit pop and is higher by 153 points to 12,243 while the S&P is up 15 points to 1,325. The Nasdaq is showing a 30 point pop and is at 2,775.
The bulls deserve “One Clap” for breaking 12,200 and 1,325 but we are still waiting for 2,800 to be taken out. We thought this video by DJ Steve Porter might provide some extra momentum for the bulls as we head into the second half of trading.
“Take the ball deep, take the top off the (Bears) defense”…that seems to be the game plan for the bulls.
We have a lot to cover in our Members Area as we look at a possible strangle trade on the Spider S&P 500 (SPY, $132.68, up $1.25). As we wait for a breakout or breakdown, there is a chance this trade could return triple-digits on both sides as volatility picks up.
