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MV Traffic Report: Bulls and Bears on Collision Course


Rain or shine, we review the day's biggest stock stories.

The market shrugged off a poor initial jobless-claims number (637,000 vs. the expectation of 605,000) and rallied today, breaking the 3-day losing streak in the S&P 500.

There was across-the-board strength in the market today, but notable winners were tech and the financials. The banks were led by Wells Fargo (WFC) and JPMorgan (JPM); over in Techland, Apple (AAPL), Research in Motion (RIMM), and Amazon (AMZN) had strong days.

I would also note that Potash (POT) ripped again; this stock didn't come in this week, and is clearly breaking out here.

As for the S&P 500, it hit a low today of 882, which was the master square outlined by Professor Cooper yesterday. It closed the day up at 893. It's not clear that yesterday was the day to buy - but was today a fake-out?

Professor Cooper had this to say on today's Buzz and Banter:

"The 882 master square mentioned yesterday is acting as support on the marginal down open (at least on the futes).

"My data shows the overhead 50 period on the hourlies at 905ish which is interesting as it coincides with an approximately 50% retrace.

"Because the Three Day Chart has turned down for the first time since the March low, a consecutive two higher highs on the daily would set up a Minus One, Plus Two sell pattern on the daily S&P."

It will be interesting to see if this plays out over the next few days. On the bullish side of the trade is Minyan James Kostohryz: He did some buying today and yesterday, and laid out his positions on today's Buzz and Banter:

"In the interest of 'putting it on the line,' and in case people are interested, this is what I have nibbled at today and yesterday with the average cost indicated, and a brief explanation:
  • JA Solar Holdings (JASO) @ 3.21. Chinese solar. Huge potential.

  • SunPower Corp (SPWRA) @ 24.55. Play on potential grid parity.

  • Hartford Financial Services Group (HIG) -- June $14 Call @ 1.30. Highly leveraged to equity market recovery.

  • Lincoln National Corp (LNC) -- July $16 Call @ 2.50. Highly leveraged to recovery of corporate debt.

  • AMR Corp (AMR) -- June $6 Call @ $0.25. Highly leveraged to my economic recovery thesis.

  • And the old core positions: You guys know these ol' boys from the past like Apple, Research In Motion, Google, Claymore/MAC Global Solar Index (TAN), Yingli Green Energy (YGE), and ION Geophysical Corp (IO).

Now that you have some ideas, let's look at what's ahead for tomorrow. In the morning, traders will be watching for economic data: the CPI, Empire Manufacturing, Net Long-Term TIC Flows, Capacity Utilization, Industrial Production, and Michigan Sentiment.

Tomorrow is also options expiration. Professor Cooper has been saying that the options arbs want to see the S&P 500 pinned at 900; after today's session, this could be a very logical resting point tomorrow.

All right, Minyans - it's Thirsty Thursday. Lakers tonight, and the Ducks for a game 7.

Have a great night!

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No positions in stocks mentioned.

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