Spread Update:
Stocks fell sharply Wednesday after Federal Reserve Chairman Ben Bernanke confirmed investors' fears that the economy has weakened. Interest rates dropped in the Treasury market as investors sought safer places for their money.


Bernanke told a congressional committee that the economy is "unusually uncertain." He said the economy is fragile, but he did not forecast that it would fall back into recession.


The Dow Jones industrial average, which was modestly higher before Bernanke's prepared remarks, fell more than 150 points as investors absorbed Bernanke's assessment of the economy, and his statement that the Fed is ready to take action if the economy worsens.


Bernanke's comments, part of his semiannual report to Congress, weren't surprising given the economic reports and corporate earnings numbers released in recent weeks. But they were enough to upset investors who have grown increasingly nervous about the state of the economic recovery. Some investors may have been hoping for a more upbeat reading from the Fed chairman.


The Fed is still expecting the economy to expand this year, but the central bank has lowered its forecast for growth.


Oliver Pursche, executive vice president at Gary Goldberg Financial Services, said investors took Bernanke's comments as "not exactly a ra-ra USA type of endorsement."


Investors have been selling stocks since late April on a combination of weak economic indicators and disappointing earnings reports. The Dow, which reached a 2010 high of 11,205.03 on April 26, has fallen 10 percent as investors have seized on any piece of bad news and shrugged off more positive signs about the economy.


In the past few days, companies' revenue figures have become a culprit. Although companies including IBM Corp. and General Electric Co. have beat analysts' second-quarter earnings estimates, their revenue has not met expectations and investors have been selling. The belief in the market is that companies aren't getting the strong sales needed to fuel the economic recovery.


The Dow fell 158.33, or 1.6 percent, to 10,071.63 in late afternoon trading. The broader Standard & Poor's 500 index fell 17.71, or 1.6 percent, to 1,065.77. The Nasdaq composite index lost 37.61, or 1.7 percent, and fell to 2,184.88.


Treasury prices surged as investors sought out the safety of government debt. The yield on the benchmark 10-year Treasury note, which helps set rates on mortgages and other kinds of loans, fell to 2.91 percent from 2.96 percent late Tuesday.

 
We got everything filled on Monday.  There was a typo in the Sunday Spread Alert on the RUT spread.  We caught it before we sent out the auto trades, so we changed it to the 510 – 500 put spread, where we planned.  We decided to leave it out there for the non- auto traders and try to make some extra money with it as we try putting another layer onto the spread later this month at the 500 level.  We’re not going to put that layer on quite yet as we watch the market for the best time to do this move.


Looks to us like Bernanke hasn’t gotten the Greenspan double speak down yet with his performance in front of the Senate committee today.  In the old days Greenspan would have spun that same information into 150 point gain on the market for the day.  We have talked to a lot of our other professional traders and they all seem nervous.  They seem to be waiting for the 4th or 5th shoe to drop.  We’re not sure how many shoes are on the ceiling, but it feels like there’s a whole shoe store just hanging there waiting.


As we move through Earnings, there really have not been very many that missed badly.  But for some, the bar was set so low it would have been hard for them to miss, though Yahoo seemed to do just that while E-bay and Apple blew the doors off the numbers.  So what has all this shown us?  Not really much other than this:  that the new gadgets still sell, and that people are looking through their storage lockers to find things to sell in this never-ending recession.
 
Let’s take a look at our spreads.  
 
AUGUST POSITIONS
 
 
 

STOCK	TYPE		STRIKES	CONTRACTS	CREDIT	CLOSE
RUT	Bull Put	510 - 500		15	.50
MNX	Bull Put	155 - 145		15	.40
OEX	Bull Put	415 - 405		15	.40
RUT	Bull Put	510 - 490		15	.60

 

PROFIT OF

2050.00

 
 
RUT 510 - 500 BULL PUT SPREAD (15 contracts)
 
 RUT 510 - 490 BULL PUT SPREAD (15 contracts)
 
RUT CLOSED AT $612.64 Today ( 112.64   points away from our put spread)
 
Profit potential of $60.00 per contract
 
Contingent Stop Order set at $515.00

There’s not much to say in regard to the RUT today just went down with everything else today.  We get another big down day like today we’ll go ahead and add that layer to the spread for the 510 – 490 spread.



 
MNX 155 – 145  BULL PUT SPREAD (15 contracts)
 
 MNX CLOSED AT $181.73 today ( 26.73  points away from our put spread)
 
Profit potential of $35.00 per contract
 
Contingent Stop Order set at $157.50
 
MNX also had a poor showing today, lower by 2.34 points.


 
 
OEX 415 – 405 BULL PUT SPREAD (15 contracts)
 
OEX CLOSED AT $485.96 today ( 70.96 points away from our put spread)
 
Profit potential of $.35.00 per contract
 
Contingent Stop Order set at $417.50
 
OEX also was down today with everything else.
 

 
As Always – Trade Happy, Trade Smart

 Spread Alert:

Investors are finding disappointment everywhere and taking out their frustration on stocks.
 
Stocks slumped Friday after banks' second-quarter earnings fell short of expectations and a new survey found that consumers are becoming more pessimistic. The Dow Jones industrial average lost 261 points, and all the major market indexes dropped more than 2.5 percent. Interest rates fell in the Treasury market as investors once again sought the safety of government securities.
 
The market fell at the opening after Citigroup Inc. and Bank of America Corp. released earnings. The two banks, like JPMorgan Chase & Co. a day earlier, reported higher earnings as losses from failed loans fell. But they are also seeing lower trading revenue because of the stock market's plunge this spring. The drop in revenue raised questions about how banks will be able to make big profits if trading is curtailed by new federal regulations.
 
Stocks fell further after a twice-monthly survey from the University of Michigan and Reuters found that consumers' gloom is increasing. An index of consumer sentiment compiled from the survey fell to 66.5 in early July from 76. That was a bigger drop than expected.
 
"It's mostly about the poor consumer confidence numbers," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. "The possibility of a double dip also starts to come to mind" for investors, he said, referring to a phrase that describes the economy falling back into recession.
 
The unexpectedly low reading on consumer confidence "spooks people and reinforces fears that the economy is slowing too much too fast," said Scott Marcouiller, chief technical market strategist at Wells Fargo Advisors. He noted that stocks had just enjoyed a seven-day winning streak, which makes them vulnerable to a big drop. And light volume, typical for a summer Friday, exacerbated the losses.
 
The market's retreat following a big gain fit with its pattern since late April, when the major indexes hit 2010 highs and then tumbled amid a variety of economic worries. But it wasn't just the economic data that set investors off Friday.
 
"You get a few bad earnings numbers and it's a lot of excuses to take profits if you got them," Marcouiller said.
 
Citigroup's shares were off 6.3 percent while Bank of America was off 9.2 percent. General Electric Co. fell 4.6 percent beating despite delivering stronger earnings and a healthy outlook. The company also reported a drop in revenue.
 
Stocks had struggled to a mixed finish Thursday after being down for much of the day on disappointing regional manufacturing reports for the Northeast. Much of the deficit was erased late in the day as news began to circulate that Goldman Sachs Group Inc. had settled civil fraud charges with the government over its dealings with subprime mortgage securities.
 
However, while investors were relieved that Goldman was putting the case behind it, they were again confronted Friday by larger ongoing worries: the economy and the future of the banking industry now that Congress has approved the banking industry overhaul bill.
 
The Dow fell 261.41, or 2.5 percent, to 10,097.90. The Standard & Poor's 500 index fell 31.60, or 2.9 percent, to 1,064.88. The Nasdaq composite index fell 70.03, or 3.1 percent, to 2,179.05.
 
For the week, the Dow is down 1 percent, the S&P 500 is down 1.2 percent, and the Nasdaq is down 0.8 percent.
 
About four stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.5 billion shares.
 
Bond prices rose in what's known as a flight to safety. That sent their yields lower. The yield on the benchmark 10-year Treasury note, which helps set interest rates on mortgages and other kinds of loans, fell to 2.93 percent from 3.00 percent late Thursday.
 
The formal announcement of Goldman's $550 million settlement came after the stock market closed on Thursday. Goldman was the only major financial company to show a gain Friday. It was up 95 cents, or 0.7 percent, at $146.17.
 
Bank of America's stock fell $1.41, or 9.2 percent, to $13.98. Citigroup was off 26 cents, or 6.3 percent, at $3.90. Both companies beat analysts' expectations. However, the drop in their revenue as a result of the stock market's slide had investors worried about how banks would make money in the future under new government regulations.
 
Google Inc. fell $34.41, or 7 percent, to $459.61 after its earnings fell short of analysts' expectations.
 
GE lost 70 cents or 4.6 percent to $14.55.
 
The Dow ended its seven-day winning streak on Thursday. It was down as much as 126 points early in the day, but closed down just 7 as word spread about the Goldman Sachs settlement.
 
A government report on consumer prices for June was mainly in line with analysts' expectations. The Consumer Price Index dipped 0.1 percent last month, largely due to lower energy bills.
 
The euro climbed above $1.29 as it recovers following a steep plunge earlier this year amid fears that government debt in many European nations would send the continent back into recession.
 
 
Consumer still feels the pain:
The summer doldrums continued into Friday for retail stocks, and analysts predict they still haven't yet reached bottom.
 
An assessment of the economy from Mattel Inc.'s CEO and a report showing a drop in consumer confidence in June sent shares of purveyors of nonessentials tumbling, extending a slump that started in May.
 
Among the biggest losers was Mattel Inc., whose shares dropped more than 9 percent. Victoria's Secret parent Limited Brands Inc. and teen retailer Abercrombie & Fitch Co. fell more than 6 percent. Nordstrom Inc. and Coach Inc. both dropped more than 5 percent.
 
The drops were part of widespread stock weakness. The Dow Jones industrial average lost nearly 280 points, and all the major market indexes dropped more than 2 percent as investors were concerned about the earnings reports from Citigroup Inc. and Bank of America Corp. that showed lower trading revenues.
 
Investors were already growing more cautious about retailers' stocks after Americans slowed their spending in recent months, but fresh data offered more evidence of difficult times ahead just as stores head into the critical back-to-school season.
 
One piece of discouraging news, released Friday, was that a twice-monthly survey from the University of Michigan and Reuters found that consumers' gloom is increasing. An index of consumer sentiment compiled from the survey fell to 66.5 in early July from 76. That was a bigger drop than expected. The data was in line with another measure of confidence from the Conference Board, which reported late last month that shopper sentiment fell in June.
 
Mattel's CEO Robert A. Eckert offered a sobering assessment of the economy as the nation's largest toy maker reported second-quarter earnings. Net income doubled from a year ago, but results still missed analysts' expectations.
 
"I don't think anybody thinks we are back to good growth in the macro economy, and I don't think anybody's building inventories in anticipation of renewed consumer spending," Eckert said.
 
Investors had pushed up retailers' stocks after blowout retail sales in February and March, a month that saw the biggest revenue gain since March 1999. But Wall Street turned skittish starting in May when stores like Macy's Inc. and J.C. Penney Co. offered cautious outlooks even as they reported a solid uptick in spending in the first quarter.
 
"We are not at the absolute bottom of retail stocks," said Richard Hastings, macro and consumer strategist with Global Hunter Securities. He believes retail shares will suffer another dip in late September, based on his belief that the back-to-school shopping season will likely end up being disappointing.
 
The volatile economy has made retailers' business uneven from week to week, and economists don't see that changing until American businesses start making significant hiring.
 
Uncertainty is growing as evidence mounts -- from disappointing housing data to sluggish hiring -- that the recovery is stalling into the second half of 2010. And that's when the benefits of most of the government's stimulus spending are beginning to fade. The latest revenue figures from retailers as well as from the Commerce Department showed consumers were still cautious. The tempered spending forced stores to deepen discounts on summer merchandise even more than planned.
 
Stores have been cautiously increasing orders for the 2010 holiday season. They're also trying to order closer to when shoppers actually buy the goods. But the worry is that even the small gains in Christmas ordering over a year ago may be too generous amid the slowdown. Next month, major retailers will report their second-quarter earnings, which are expected to reflect the slowdown in spending, but analysts will be looking for any comments about consumer behavior.
 
But don't expect shoppers to pick up their spending pace anytime soon, says Hastings.
 
"That's just not happening," he said.
 
 That’s Friday’s rap on the news.
 
 
The three spreads we had left, finished worthless which means we were able to put some money into the bank this month.  CME needed the room, as it turns out, as the market got very ugly on consumer sentiment Friday with one of the lowest numbers in years, so with our change in CME stop loss to 662.50, we were able to make it through the Friday drop where it closed out worthless.
 
 
 
JULY POSITIONS
 
 
 

STOCK	TYPE		STRIKES	CONTRACTS	CREDIT	CLOSE
RUT	Bull Put	560 - 550		15	.45	0
MNX	Bull Put	170 - 160		15	.35	2.10
OEX	Bull Put	445 - 435		15	.40	0
CME	Bull Put	260 - 250		15	.40	0

 
 
 

PROFIT OF

?

 
 
As we move into August we will be looking into getting into 3 spreads on Monday
 
 
 
NEW TRADE ALERT (3)
 
 
Please Note: This is a Day Order and Limit Order.
 
 
RUSSELL 2000 INDEX   (RUT)
 
OPENING 510 - 490 RUT AUG. BULL PUT SPREAD (15 contracts)
 
Sell 15 AUG. Puts at 510 strike price
 
 
Buy 15 AUG. Puts at 490 strike price


Total Credit 0.60 per contract


Potential Profit $900.00


 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $495.00
 
 
 
 
 
MINI -NASDAQ 100 INDEX (MNX)
 
OPENING 155 – 145 AUG. BULL PUT SPREAD (15 contracts)


Sell 15 AUG. Puts at 155 strike price


Buy 15 AUG. Puts at 145 strike price


Total Credit 0.40 per contract


Potential Profit $600.00
 
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $157.50


 
S&P 100 INDEX (OEX)


OPENING 415 – 405   AUG. BULL PUT SPREAD (15 contracts)


Sell 15 AUG. Puts at 415 strike price


Buy 15 AUG. Puts at 405 strike price


Total Credit 0.40 per contract


Potential Profit $600.00
 
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $417.50
 

 
 
As Always – Trade Happy, Trade Smart

 Spread Update:
 
U.S. President Barack Obama discussed his efforts to stimulate the economy and create jobs with billionaire U.S. investor Warren Buffett in an Oval Office meeting on Wednesday, a White House official said.
 
The White House held a series of events focused on job creation and the economy during the day, as the U.S. Chamber of Commerce issued a rebuke of Obama's economic agenda. The Chamber, a leading business group, accused Obama and his fellow Democrats in Congress of neglecting job creation and hampering growth with burdensome regulatory and tax policies.
 
Four months before the November congressional elections in which Democrats are fighting to keep majorities in Congress, Republicans have tried to paint Obama and his fellow Democrats as anti-business.
 
"Today, the president met with Warren Buffett, one of the world's most well-respected business leaders, to discuss the economy and our ongoing efforts to work with the private sector to stimulate growth and create jobs," the official said
 
One thing that has always fascinated us about President Obama is how he has important people come and discuss matters regarding our economy.  He met with Warren Buffet today, and we heard that Bill Clinton was also in the meeting.  Are these just photo opps for him, or does something of value actually come from these meetings?  We can’t see Mr. Buffet wasting his time on something that is not taken seriously.  We have great respect for Mr. Buffet and his accomplishments.  Obama’s big job summit last December is an example of  time and money spent just to distract us from what was really going on in the country, and to make it look like he’s busy trying to solve problems.
    
Stocks action today:
 
U.S. stocks broke a six-day winning streak on Wednesday, with the S&P 500 ending a hair lower after the Federal Reserve suggested additional measures may be needed to combat a weakening economy.
 
Optimism over the start of earnings season limited declines after Intel Corp reported better-than-expected results on signs of renewed corporate spending. Shares of Intel rose 1.7 percent to $21.36, helping keep the Dow and Nasdaq slightly higher.
 
Minutes of the Fed's June meeting showed officials are more concerned with the pace of economic recovery. That added to jitters stoked by a weak report on June retail sales.
 
Markets have been rattled in recent weeks as investors try to assess the extent of the renewed weakness. Though earnings and comments from Alcoa and Intel have been positive, worries over the economy remain.
 
The Fed's minutes put the central bank in the slow patch camp, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
 
"Essentially, it has confirmed some of the fears of investors, namely that the recovery is going to take some time, and that's the last thing we wanted to hear from the Fed," Hellwig said.
 
The Dow Jones industrial average edged up 3.70 points, or 0.04 percent, to end at 10,366.72. The Standard & Poor's 500 Index dipped just 0.17 of a point, or 0.02 percent, to 1,095.17. The Nasdaq Composite Index added 7.81 points, or 0.35 percent, to close at 2,249.84.
 
Earlier, the S&P 500 touched an intraday high at 1,099.08 and the Nasdaq was up as much as 0.8 percent at a session high of 2,260.33.
 
The consumer discretionary sector was among the S&P 500's biggest losers, giving up 0.5 percent. Shares of youth-oriented retailer Abercrombie & Fitch lost 0.8 percent to $35.93.
 
The Commerce Department reported that U.S. retailers' June sales declined 0.5 percent -- more than twice the 0.2 percent drop forecast by economists polled by Reuters.
 
Bank stocks also ranked among the biggest drags, with the KBW Bank Index  down 1.6 percent. JPMorgan Chase & Co, which reports results on Thursday, slipped 0.3 percent to $40.35.
 
Smaller banks also fell, including Zions Bancorp, which lost 3.6 percent to $23.33, while Regions Financial dropped 3.1 percent to $7.15.
 
A congressional watchdog agency warned that smaller banks that received government bailout money are likely to run into trouble repaying it and may become vulnerable to takeovers.
 
The pharmaceutical sector registered a healthy reaction to news about GlaxoSmithKline Plc.
 
U.S.-listed shares of GlaxoSmithKline Plc rose 1.8 percent to $36.35 after health advisers said its diabetes drug Avandia should be allowed to stay on the market in some form. The decision by the Food and Drug Administration's panel reduced the threat of more litigation, which could have followed a ban of the drug.
 
An index of pharmaceutical companies' shares gained 0.5 percent.
 
Elsewhere on the earnings front, fast-food chain operator Yum Brands Inc gave a full-year profit outlook late on Tuesday that was below expectations. The stock fell 1.2 percent to $41.00.
 
About 7.59 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, sharply below last year's estimated daily average of 9.65 billion.
 
Decliners beat advancers on the NYSE by a ratio of 16 to 13, while on the Nasdaq, about 15 stocks fell for every 11 that rose.
 
That’s the rap on the news.
 
 
We were sitting on another nice day ‘til the Fed minutes came out, and like anything dealing with the Fed, we saw a 100 point swing with the news.  We slowly crawled back to a positive on the Dow, but the S&P couldn’t make it by day’s end.
 
Our spreads, for the most part, have faired well during this 6 day rally.  CME seems to be stuck.  Do we mind that it’s stuck?  For the most part, no, even though we would like to see a bigger cushion here, the time decay has done its job.  With only 2 days left in this cycle for this spread, there’s not much money left in it, and because we only have 2 days, we will be dropping our stop loss to 262.50.  We want to give this spread a little more room as we come into the finish line.  The other 2 spreads are sitting great with only one day left for them.  Let see where we sit.
 
 
 
 JULY POSITIONS
 
 

STOCK	TYPE		STRIKES	CONTRACTS	CREDIT	CLOSE
RUT	Bull Put	560 - 550		15	.45
MNX	Bull Put	170 - 160		15	.35	2.10
OEX	Bull Put	445 - 435		15	.40
CME	Bull Put	260 - 250		15	.40

 

PROFIT OF

?

 
 
RUT 560 – 550 BULL PUT SPREAD (15 contracts)
 
RUT CLOSED AT $640.16 Today (80.16   points away from our put spread)
 
Profit potential of $60.00 per contract
 
Contingent Stop Order set at $565.00
 
 
The RUT moved lower today, but after the move higher that we’ve seen over the last week. This spread should go out worthless with one day left of trading.
 
 

 
 
OEX 445 - 435 BULL PUT SPREAD (15 contracts)
 
OEX CLOSED AT $497.47 today ( 52.47  points away from our put spread)
 
Profit potential of $.35.00 per contract
 
Contingent Stop Order set at $447.50
 
OEX moved higher today closing up .47.  Here also we should have no problem with this spread going out worthless.
 
 
 
 
 
 
 
CME 260-250 BULL PUT SPREAD (15 contracts)
 
CME CLOSED AT $275.49 today ( 15.49  points away from our put spread)
 
Profit potential of $35.00 per contract
 
Contingent Stop Order set at $262.50
 
CME was lower today and seems stuck here around 275.  Like we mentioned above we have decided to lower our stop loss to 262.50 to give the stock a little more room to move with only 2 trading days left.
 
 
 

 

Spread Update: Stocks ended a big week with modest gains Friday after China renewed Google's license to operate in the country and traders awaited earnings reports due next week. The Dow Jones industrial average rose 59 points to push its gain for the week to 5.3 percent. Broader indexes posted bigger gains, helped by Google's advance. Trading volume was light, signaling many investors were staying out of the market. The renewal of Google's license was in doubt because of a strained relationship between the company and China's government over censorship of search results. Google rose 2.4 percent. News on the economy wasn't as upbeat. Inventories held by wholesalers rose in May for a fifth straight month though sales dropped for the first time in more than a year. The government said wholesale inventories rose 0.5 percent and sales dropped 0.3 percent. It was the first drop since March 2009, when major stock indexes hit a 12-year low. The moderate buying came as investors prepared for earnings reports that start next week. Traders often avoid making big bets just before earnings releases because the reports provide a good picture of how companies are performing. Investors will look closely at forecasts for future quarters because economic reports in the past two months have raised questions about the pace of the rebound. "It's time to determine if this is just a soft patch in the recovery or if it's the beginning of a second leg down. That's what the market is struggling with," said Dan Deming, a trader with Stutland Equities in Chicago. Investors will want to know whether companies are feeling the effects of slower growth and whether corporations believe the recovery will gain momentum in the coming months. Stocks consistently fell over the past couple of months because data showed the economy was growing, but not as fast as had been forecast. Earnings season starts with aluminum producer Alcoa Inc. on Monday. The company's stock rose 1.9 percent ahead of its report. Other companies scheduled to release results next week include banking giants JPMorgan Chase & Co. and Bank of America Corp. General Electric Co. and chipmaker Intel Corp. are also scheduled to report earnings next week. Overseas markets rose after a surprise interest rate hike in South Korea was seen as a sign of confidence that the global economy will continue expand. Central banks around the world, including the U.S., have kept rates at historically low rates to stimulate growth. According to preliminary calculations, the Dow rose 59.04, or 0.6 percent, to 10,198.03. The Standard & Poor's 500 index rose 7.71, or 0.7 percent, to 1,077.96, while the technology-focused Nasdaq composite index rose 21.05, or 1 percent, to 2,196.45. That’s the rap on the news for Friday: Now our attention turns to earnings next week. Some of the early bets are in, and there is a lot of worry about guidance going forward as the economy has started to spit and sputter.  Mr. Greenspan said we seem to be “at a pause.” We think that’s one of the best lines he has said since he retired. Early in his retirement, we, here at IST suggested he spend his time on fishing rather than market updates, because some of his off-the-cuff statements were way off the mark as to what was going on and hurt the market. There is one thing he has always been good at, though, and that’s stating the obvious. So look for Alcoa’s earnings tomorrow. There are signs all over that business is not happy with the government. Some of Obama’s biggest supporters in the business world were sounding off their displeasure in Sun Valley, Idaho at their yearly get together.  Even Barbara Streisand was there with her husband agreeing with the speeches that were being given expressing their displeasure with how the Obama administration is mishandling business issues.  Whether they heard it in Washington or not, it’s hard to tell, but with election season just around the corner, someone there should be listening. Well, our spreads have done very well over the past week, so let’s take a look at where they stand with only one week to go. JULY POSITIONS

STOCK		TYPE			STRIKES			CONTRACTS		CREDIT		CLOSE
RUT		Bull Put		560 - 550				15		.45
MNX		Bull Put		170 - 160				15		.35		2.10
OEX		Bull Put		445 - 435				15		.40
CME		Bull Put		260 - 250				15		.40

PROFIT OF

?

RUT 560 – 550 BULL PUT SPREAD (15 contracts) RUT CLOSED AT $629.43 Today (69.43   points away from our put spread) Profit potential of $60.00 per contract Contingent Stop Order set at $565.00 The RUT moved higher today with the market, moving a total of 9.16. This index has moved well off its low this week. We only have 4 days left before this one hopefully closes out worthless, and we keep the money we made off this one.  OEX 445 - 435 BULL PUT SPREAD (15 contracts) OEX CLOSED AT $488.78 today ( 43.78  points away from our put spread) Profit potential of $.35.00 per contract Contingent Stop Order set at $447.50 OEX has also moved well off this week’s low, adding another 3.14 points to our spread’s cushion, and with 4 days of trading left we look to be in good shape going into the final week.  CME 260-250 BULL PUT SPREAD (15 contracts) CME CLOSED AT $277.19 today ( 17.16  points away from our put spread) Profit potential of $35.00 per contract Contingent Stop Order set at $265.00 CME was the only one that didn’t move up from Wednesday’s price. From what we heard on the street, that an analyst company had cut their price target on CME from the high 300’s to the mid 300’s. We’re not sure why this should affect the stock much, as it’s already trading at 277.19, well below both price targets.  

Spread Update: A disappointing jobs report sent stocks falling Friday and gave the Dow Jones industrial average its longest losing streak since the worst days of the financial crisis. The Dow dropped 46 points Friday for its seventh straight loss and its longest slide since October 2008. The Dow and other major indexes posted big losses for a second straight week. Investors found new reason to worry that the economic recovery is losing momentum after the government said private employers added only 83,000 jobs last month, fewer than the 112,000 analysts had forecast. Light trading ahead of the long Independence Day weekend brought choppy moves, particularly in the final hour. The Dow was essentially flat in the last five minutes before sliding just before the close. Reports on jobs earlier in the week had diminished expectations for the latest and most important snapshot of the labor market. Payroll company ADP said private employment was weaker than expected, while the government said initial claims for unemployment benefits rose unexpectedly last week. Investors are focused on business hiring because that makes up the bulk of the country's work force. Also, overall jobs numbers have been skewed in recent months by temporary census workers. With many of those jobs gone, it was again clear that businesses aren't adding to payrolls as quickly as most investors would like. "The small businessman refuses to play here," said Linda Duessel, equity market strategist at Federated Investors in Pittsburgh. She said business leaders don't yet have the confidence to hire and are in some cases relying on temporary workers. The enduring jobs problems are raising concerns that the economy will begin sliding again. Many economists say that's unlikely but still a worry. "We're going to need, as a market, something to make us believe that the double-dip scenario is wrong," Duessel said, referring to the possibility of a second recession. "A soft patch is normal." She said earnings reports for the April-June quarter could boost sentiment if companies also give upbeat forecasts. The government cut 225,000 census jobs in June. Overall, 125,000 workers lost their jobs last month, more than the drop of 110,000 analysts predicted. The unemployment rate did drop unexpectedly, sliding to 9.5 percent from 9.7 percent. Economists polled by Thomson Reuters had expected it to rise to 9.8 percent. However, the decrease came as some people gave up looking for work. That means they weren't counted among the unemployed. The government also reported that factory orders fell in May for the first time in nine months. The 1.4 percent drop was the biggest since March 2009, when major stock indexes hit a 12-year low. The drop unnerved traders because manufacturing has been one of the strongest areas of the economy. Pessimism has been growing since late April about the health of the global economy. Debt problems in Greece and other European countries gave way to concerns about the pace of the U.S. recovery. The Dow dropped 10 percent for the second quarter, which ended Wednesday, while the Standard & Poor's 500 index lost 11.9 percent. "Clearly there is a loss of momentum," Bob Baur, chief global economist at Principal Global Investors, said about the recovery. He said the slide in stocks could hurt the economy by eroding confidence. Still, he said a double-dip is unlikely in part because incomes are ticking higher and consumers are slowly boosting spending. "We just don't see the typical things that start another recession," Baur said. The Dow fell 46.05, or 0.5 percent, to 9,686.48, its lowest close since Oct. 5 2009. The Dow hasn't fallen for seven straight days since an eight-day loss that ended Oct. 10, 2008. The Standard & Poor's 500 index fell 4.79, or 0.5 percent, to 1,022.58. The Dow is now down 13.6 from its 2010 high of 11,205.03, while the S&P 500 is down 16 percent from its high of 1,217.28. The Nasdaq composite index fell 9.57, or 0.5 percent, Friday to 2,091.79. For the week, the Dow dropped 4.5 percent. The S&P 500 index lost 5 percent, while the Nasdaq dropped 5.9 percent. The S&P 500's two-week drop is the worst since early May. Demand for Treasurys weakened after spiking earlier in the week as investors sought a safe place for their money. The yield on the 10-year note, which moves opposite its price, rose to 2.98 percent from 2.95 percent late Thursday. Its yield is used as a benchmark for interest rates on some mortgages and other consumer loans. Crude oil fell 81 cents to $72.14 per barrel on the New York Mercantile Exchange. Gold rose. Daniel Penrod, senior industry analyst for the California Credit Union League, said some businesses are going to put off hiring until there is more certainty about the economy. "I don't see business really taking huge risks right now to build when they don't think people are going to be walking through the door," Penrod said. The coming week could bring more insight into the economy if companies begin to drop hints about their earnings and forecasts. U.S. markets are closed Monday in observance of Independence Day. Tuesday brings a report on services businesses, which make up the biggest chunk of the economy. Three stocks fell for every two that rose on the New York Stock Exchange, where consolidated volume came to 4 billion shares, compared with 6.2 billion Thursday. The Russell 2000 index of smaller companies fell 5.79, or 1 percent, to 598.97. The Russell dropped 7.2 percent for the week. And that’s the recap on the news: We wanted to start tonight by looking at the DJX chart and hopefully, see what’s happening and get an idea of where we are going. To begin with, the chart shows us a Head-and-Shoulders chart formation.  As you can see, these formations tend to be bearish going forward, and with the 6 days of downward motion, we would say it has lived up to its reputation. We now have dropped below the shoulder’s lowest point, so we may see some buying in here, which would be a nice sign for us and take some heat off the spreads that we still have.  The question is: Is the selling over for now, or is there more to come? The spreads that we have left are still good, but we had to close out our MNX spread after it hit our stop loss on Thursday.  We still have three good spreads, so let’s take a look at where they are for the beginning of this week. JULY POSITIONS

STOCK	TYPE		STRIKES	CONTRACTS		CREDIT		CLOSE
RUT	Bull Put	560 - 550		15		.45
MNX	Bull Put	170 - 160		15		.35		2.10
OEX	Bull Put	445 - 435		15		.40
CME	Bull Put	260 - 250		15		.40

PROFIT OF

?

RUT 560 – 550 BULL PUT SPREAD (15 contracts) RUT CLOSED AT $598.97 Today ( 38.97  points away from our put spread) Profit potential of $60.00 per contract Contingent Stop Order set at $565.00 The RUT moved lower with the market last week.  The only good thing to say about that is that those 6 days are past us and that the spread is still holding above our stop loss. We may see some more downward movement, but for the most part we feel that there can’t be much more left. OEX 445 - 435 BULL PUT SPREAD (15 contracts) OEX CLOSED AT $463.84 today ( 18.64  points away from our put spread) Profit potential of $.35.00 per contract Contingent Stop Order set at $447.50 For OEX, the same can be said.  It’s still above its stop loss, so we’re still in the game. CME 260-250 BULL PUT SPREAD (15 contracts) CME CLOSED AT $274.86 today ( 14.89 points away from our put spread) Profit potential of $35.00 per contract Contingent Stop Order set at $265.00 CME has also been moving lower with the market and there is not much of our cushion left. We think the selling is over on this one.  Earnings has been scheduled now for 7/29 - well after this cycle is over, so they shouldn’t affect the price other than a run up before earnings. As Always – Trade Happy, Trade Smart

Spread Update: Bank stocks shot higher Friday after an agreement on a financial regulation bill reassured investors that new rules won't devastate financial companies' profits.

  Banks outdistanced the rest of the market after congressional negotiators agreed on a bill that increases the regulation of financial companies, but that doesn't include some of the harshest provisions that the government originally proposed. The legislation imposes new rules on the complex investments known as derivates, but the rules aren't as strict as investors feared.

  It also includes a far milder version of what's been called the Volcker rule. That rule, named after former Federal Reserve Chairman Paul Volcker, would have banned commercial banks from trading simply to increase their profits, a practice known as proprietary trading.

  Analysts said the deal removes a huge cloud that has hovered over the financial industry for much of this year. Investors have feared that intense regulation would devastate bank profits. Now, the market seems to believe that financial companies would do well even with the new limits on their business.

  "They come out of this big-time winners," Bob Froehlich, senior managing director at Hartford Financial Services, said of financial companies. "Two years later, people will look back and say 'My gosh, nothing really changed.'"

  Banks were the market's big performers on a day when the Dow Jones industrial average fell almost 9 points and the other major indexes had only slim gains.

  Goldman Sachs Group Inc. rose 3.5 percent, while JPMorgan Chase & Co. gained 3.7 percent. Bank of America rose 2.7 percent and Citigroup Inc. rose 4.2 percent.

  Regional banks also scored big gains. Suntrust Banks Inc. rose 4.7 percent and Synovus Financial Corp. gained 5.3 percent.

  Investors had feared that the financial regulation bill would sharply curtail bank profits by limiting financial companies' ability to trade in derivatives. Companies and investors often use derivatives to hedge against losses. But some derivatives are purely speculative investments, and some of these derivatives have been blamed for contributing heavily to the collapse of the housing market and the 2008 financial crisis.

  The legislation calls for most derivatives to be traded on regulated exchanges. But provisions of the bill that were investors' worst-case scenario, for example, an outright ban on banks' trading derivatives, were not included in the final agreement. Banks can still trade derivatives related to interest rates, foreign exchanges, gold and silver, investments that have contributed to their big profits. They would have to use subsidiaries with their own funds in order to trade in riskier derivatives. But the parent bank could still keep the profits from those trades. "The bill could have been a lot worse," said Alan Valdes, vice president at Hilliard Lyons in New York. "It's a bill we can live with."

  The legislation also allows banks to invest only up to 3 percent of their capital in private equity and hedge funds. That is a remnant of the original Volcker rule.

  The agreement also alleviated another investor concern. A plan that would have had banks paying for the costs of unwinding mortgage giants Fannie Mae and Freddie Mac was not included in the bill that will now go to the House and Senate for final approval.

  One reason why investors seem happy with the agreement is that they know banks will continue to lobby in Washington for looser regulations. In other words: The market doesn't believe that the bill, when it becomes law, will be in stone.

  Froehlich also suggested that banks, now having a greater understanding of the regulatory environment, might be more willing to lend. That would help the economic recovery pick up more momentum, he said.

  "It was the biggest uncertainty that's out there," Froehlich said. "Now that we know what financial reform is all about I really do believe that they are going to start lending again."

  The stock market's overall gains were limited by the government's final report on the gross domestic product for the first quarter. The Commerce Department said the GDP, the broadest measure of the economy's health, rose at a 2.7 percent annual pace rather than the 3 percent previously estimated. The report follows a string of weaker-than-expected economic numbers in the past week and raised investors concerns about the recovery.

  The Dow fell 8.99, or 0.1 percent, to 10,143.81. The broader Standard & Poor's 500 index rose 3.07, or 0.3 percent, to 1,076.76, and the Nasdaq composite index rose 6.06, or 0.3 percent, to 2,223.48.

  For the week, the Dow is down 2.9 percent, while the S&P 500 is down 3.6 percent and the Nasdaq is off 3.7 percent. The market fell sharply Wednesday and Thursday in response to the disappointing economic reports.

  The indexes fluctuated for much of the day, in part because of the annual reshuffling of stocks in the Russell indexes. That forces investors to buy and sell certain stocks if they have portfolios that follow the indexes.

  The Russell 2000 index of smaller companies rose 11.94, or 1.9 percent, to 645.11.

  Treasury prices rose, driving down interest rates. The 10-year Treasury note's yield fell to 3.11 percent from 3.14 percent late Thursday.

  Goldman Sachs rose $4.68, or 3.5 percent, to $139.66, while JPMorgan Chase rose $1.41, or 3.7 percent, to $39.44. Bank of America rose 40 cents, or 2.7 percent, to $15.42, and Citigroup Inc. rose 16 cents, or 4.2 percent, to $3.94.

  Suntrust Banks rose $1.14, or 4.7 percent, to $25.51. Synovus gained 14 cents, or 5.3 percent, and closed at $2.80

  Almost four stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to a heavy 6.28 billion shares, up from 4.94 billion on Thursday. The big volume was the result of the buying and selling in Russell index component stocks.

  The FTSE-100 index in London fell 1 percent, while Paris' CAC-40 index fell 1 percent and Frankfurt's DAX index lost 0.7 percent. Earlier, the Nikkei 225 index in Tokyo closed down nearly 2 percent.

  That’s the news recap for Friday. The government has taken some worry out of the market for once. We have all been sitting on pins and needles while the government plays with the free market, and for once, the investor comes up on the winning side. Still, with a smaller than expected GDP number, we couldn’t stay positive on the day after a 9-point drop. Small stocks did well on the news giving the Nasdaq a 6-point rise and the RUT 11-point rise also. So far, we’re looking good in our spreads with all of them filled this week and making us money, so let’s take a look at where we’re sitting. JULY POSITIONS

STOCK	TYPE		STRIKES	CONTRACTS		CREDIT		CLOSE
RUT	Bull Put	560 - 550		15		.45
MNX	Bull Put	170 - 160		15		.35
OEX	Bull Put	445 - 435		15		.40
CME	Bull Put	260 - 250		15		.40

PROFIT OF

$2400.00

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RUT 560 – 550 BULL PUT SPREAD (15 contracts) RUT CLOSED AT $645.11 Today ( 85.11  points away from our put spread) Profit potential of $60.00 per contract Contingent Stop Order set at $565.00 The RUT had a great move on Friday. even with the low GDP number. We’re in great shape on this one moving into July.


MNX 170 – 160 BULL PUT SPREAD (15 contracts)  MNX CLOSED AT $183.85 today ( 13.85  points away from our put spread) Profit potential of $35.00 per contract Contingent Stop Order set at $172.50 The MNX  was flat on Friday, a little surprise considering  the nice move on the RUT today.

OEX 445 - 435 BULL PUT SPREAD (15 contracts) OEX CLOSED AT $486.62 today ( 41.62  points away from our put spread) Profit potential of $.35.00 per contract Contingent Stop Order set at $447.50 OEX was flat on Friday. The reform on banks should help the OEX move higher because there are a lot of banking stocks that make up the index. We’ll have to see how Monday goes to see if the news holds bank stocks going forward.
CME 260-250 BULL PUT SPREAD (15 contracts) CME CLOSED AT $297.28 today (37.28 points away from our put spread) Profit potential of $35.00 per contract Contingent Stop Order set at $265.00 CME moved up nicely after a drop on Thursday, bouncing off of 290 support, on the government news that the new reforms will bring more traffic to CME and ICE As Always – Trade Happy, Trade Smart.

Trade Alert

Here's something for investors beaten down by the market's sharp declines this spring: The Dow Jones industrial average just had its best two weeks since November.

  The Dow's gain of 16 points on Friday was relatively modest, but it capped a surge of 5.2 percent over the past two weeks that puts the average nearly halfway back to the high for the year that it reached on April 26.

  Stocks had a longer winning streak earlier this year, an eight-week stretch that ended in late April, but those gains were more gradual. Then a sharp drop in May and early June brought the Dow down as much as 12.4 percent below its 2010 high, a decline that market analysts call a "correction."

  The debate now is focusing on whether that correction phase is over. A correction is generally considered a drop of 10-20 percent from a recent peak. The Dow has risen back 6.5 percent from its lowest close of the year on June 7, but it's still down 6.7 percent from its 2010 high.

  "I don't know that we're totally through the correction," said Stu Schweitzer, global markets strategist at JPMorgan's Private Bank in New York. "I do expect markets to remain quite volatile all through the rest of this year, but I still expect that we're going to end the year higher."

  Minerals companies led other shares higher after gold settled at another record high. Barrick Gold Corp. jumped 3.5 percent, while Newmont Mining Corp. rose 2.6 percent.

  Corporate news also brought out buyers. CVS Caremark Corp. rose 1.9 percent and Walgreen Co. rose 2.8 percent after the two companies settled a dispute over pharmacy prescriptions that had threatened to hurt profits. Dow component Caterpillar Inc. gained 1.4 percent after reporting sharply higher sales.

  The Dow rose 16.47, or 0.2 percent, to close at 10,450.64. The broader Standard & Poor's 500 index rose 1.47, or 0.1 percent, to 1,117.51. The Nasdaq composite index edged up 2.64, or 0.1 percent, to 2,309.80.

  All three indicators posted solid gains for the week. The Dow is up 2.3 percent, the S&P 500 2.4 percent and the Nasdaq 3 percent.

  The Dow posted its second consecutive weekly gain of more than 2 percent. Before that, the Dow had been down for three weeks. The last time the Dow had a two-week stretch of gains that strong was in November 2009.

  Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where consolidated volume came to 4.9 billion shares, versus 4.6 billion the day before. Volume was heavier because of the simultaneous expiration of four kinds of futures and options contracts, which occurs once every quarter.

  Trading was relatively quiet considering the options and futures expirations, which can often bring volatility as traders adjust their portfolios. The week that follows the June expiration is often a losing one for investors. The Dow has posted a loss during that week for the past 11 years, according to the Stock Trader's Almanac.

  Bond prices slipped, pushing interest rates higher. The yield on the benchmark 10-year Treasury note rose to 3.23 percent from 3.20 percent late Thursday.

  The dollar edged lower against the British pound and Japanese yen, while the euro edged down versus the dollar. The euro has regained strength over the past week amid encouraging signs in Europe's efforts to control its debt crisis. Spain had successful bond sales this week, and European leaders pledged to disclose the results of stress tests on banks.

  Crude oil rose 39 cents to settle at $77.18 per barrel on the New York Mercantile Exchange.

  Randy Frederick, director of trading and derivatives at Charles Schwab, said the market's bounce from its recent lows has come too quickly. He said professional traders are building up positions in investments that would cushion their losses if the market fell again.

  "Not that we're going into this big ugly bear market but to go back down to the lows that we were at just a few weeks ago, I think, seems very possible based on what I see," Frederick said. "I see a reason to be a little cautious right now."

  The coming week brings readings on home sales and consumer sentiment. The Federal Reserve also will meet on interest rates.

  Gold settled up $1,258.30 an ounce, a gain of $9.60. Barrick Gold rose $1.56, or 3.5 percent, to $46.38, and Newmont Mining climbed $1.57, or 2.6 percent, to $61.25. That’s the rap on the news: The Market came through for us this cycle with 100% profit on all spreads.  All our June spreads expired worthless.   JUNE POSITIONS

STOCK	TYPE		STRIKES	CONTRACTS		CREDIT		CLOSE
RUT	Bull Put	500 - 510		15		.60		0.00
CME	Bull Put	240 - 250		15		.50		0.00
RUT	Bull Put	520 - 530		15		.40		0.00
MNX	Bull Put	150 - 160		15		.35		0.00
OEX	Bull Put	410 - 420		15		.35		0.00
CME	Bull Put	250 – 260		15		.35		0.00

PROFIT OF	$ 2175.00

Let’s start with some new July spreads.  We are going to the well one more time with the stocks and indexes we had last month, since all of their charts will show here an opening to make some more money. CME is sitting where we’re using the same spread for July as we had in June.  The others have new strike prices, but are still close to where we had them for June.  NEW TRADE ALERT (4) Please Note: This is a Day Order and Limit Order. RUSSELL 2000 INDEX   (RUT) OPENING  560-550 RUT JULY BULL PUT SPREAD (15 contracts) Sell 15 July Puts at 560 strike price
  Buy 15 July Puts at 550 strike price


Total Credit 0.45 per contract


Potential Profit $675.00


 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $565.00 CME Group Inc. (CME)


OPENING 260-250 JULY BULL PUT SPREAD (15 contracts)
 

Sell 15 July Puts at 260 strike price


Buy 15 July Puts at 250 strike price


Total Credit 0.40 per contract


Potential Profit $600.00
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $262.50


 MINI -NASDAQ 100 INDEX (MNX)


OPENING 170 – 160 JULY BULL PUT SPREAD (15 contracts)


Sell 15 July Puts at 170 strike price


Buy 15 July Puts at 160 strike price


Total Credit 0.35 per contract


Potential Profit $525.00
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $172.50


S&P 100 INDEX (OEX)


OPENING 445 – 435 JULY BULL PUT SPREAD (15 contracts)


Sell 15 July Puts at 445 strike price


Buy 15 July Puts at 435 strike price


Total Credit 0.40 per contract


Potential Profit $600.00 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $447.50






As always, Trade Happy and Trade Smart

Trade Alert

Here's something for investors beaten down by the market's sharp declines this spring: The Dow Jones industrial average just had its best two weeks since November.

  The Dow's gain of 16 points on Friday was relatively modest, but it capped a surge of 5.2 percent over the past two weeks that puts the average nearly halfway back to the high for the year that it reached on April 26.

  Stocks had a longer winning streak earlier this year, an eight-week stretch that ended in late April, but those gains were more gradual. Then a sharp drop in May and early June brought the Dow down as much as 12.4 percent below its 2010 high, a decline that market analysts call a "correction."

  The debate now is focusing on whether that correction phase is over. A correction is generally considered a drop of 10-20 percent from a recent peak. The Dow has risen back 6.5 percent from its lowest close of the year on June 7, but it's still down 6.7 percent from its 2010 high.

  "I don't know that we're totally through the correction," said Stu Schweitzer, global markets strategist at JPMorgan's Private Bank in New York. "I do expect markets to remain quite volatile all through the rest of this year, but I still expect that we're going to end the year higher."

  Minerals companies led other shares higher after gold settled at another record high. Barrick Gold Corp. jumped 3.5 percent, while Newmont Mining Corp. rose 2.6 percent.

  Corporate news also brought out buyers. CVS Caremark Corp. rose 1.9 percent and Walgreen Co. rose 2.8 percent after the two companies settled a dispute over pharmacy prescriptions that had threatened to hurt profits. Dow component Caterpillar Inc. gained 1.4 percent after reporting sharply higher sales.

  The Dow rose 16.47, or 0.2 percent, to close at 10,450.64. The broader Standard & Poor's 500 index rose 1.47, or 0.1 percent, to 1,117.51. The Nasdaq composite index edged up 2.64, or 0.1 percent, to 2,309.80.

  All three indicators posted solid gains for the week. The Dow is up 2.3 percent, the S&P 500 2.4 percent and the Nasdaq 3 percent.

  The Dow posted its second consecutive weekly gain of more than 2 percent. Before that, the Dow had been down for three weeks. The last time the Dow had a two-week stretch of gains that strong was in November 2009.

  Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where consolidated volume came to 4.9 billion shares, versus 4.6 billion the day before. Volume was heavier because of the simultaneous expiration of four kinds of futures and options contracts, which occurs once every quarter.

  Trading was relatively quiet considering the options and futures expirations, which can often bring volatility as traders adjust their portfolios. The week that follows the June expiration is often a losing one for investors. The Dow has posted a loss during that week for the past 11 years, according to the Stock Trader's Almanac.

  Bond prices slipped, pushing interest rates higher. The yield on the benchmark 10-year Treasury note rose to 3.23 percent from 3.20 percent late Thursday.

  The dollar edged lower against the British pound and Japanese yen, while the euro edged down versus the dollar. The euro has regained strength over the past week amid encouraging signs in Europe's efforts to control its debt crisis. Spain had successful bond sales this week, and European leaders pledged to disclose the results of stress tests on banks.

  Crude oil rose 39 cents to settle at $77.18 per barrel on the New York Mercantile Exchange.

  Randy Frederick, director of trading and derivatives at Charles Schwab, said the market's bounce from its recent lows has come too quickly. He said professional traders are building up positions in investments that would cushion their losses if the market fell again.

  "Not that we're going into this big ugly bear market but to go back down to the lows that we were at just a few weeks ago, I think, seems very possible based on what I see," Frederick said. "I see a reason to be a little cautious right now."

  The coming week brings readings on home sales and consumer sentiment. The Federal Reserve also will meet on interest rates.

  Gold settled up $1,258.30 an ounce, a gain of $9.60. Barrick Gold rose $1.56, or 3.5 percent, to $46.38, and Newmont Mining climbed $1.57, or 2.6 percent, to $61.25. That’s the rap on the news: The Market came through for us this cycle with 100% profit on all spreads.  All our June spreads expired worthless.   JUNE POSITIONS

STOCK	TYPE		STRIKES	CONTRACTS		CREDIT		CLOSE
RUT	Bull Put	500 - 510		15		.60		0.00
CME	Bull Put	240 - 250		15		.50		0.00
RUT	Bull Put	520 - 530		15		.40		0.00
MNX	Bull Put	150 - 160		15		.35		0.00
OEX	Bull Put	410 - 420		15		.35		0.00
CME	Bull Put	250 – 260		15		.35		0.00

PROFIT OF	$ 2175.00

Let’s start with some new July spreads.  We are going to the well one more time with the stocks and indexes we had last month, since all of their charts will show here an opening to make some more money. CME is sitting where we’re using the same spread for July as we had in June.  The others have new strike prices, but are still close to where we had them for June.  NEW TRADE ALERT (4) Please Note: This is a Day Order and Limit Order. RUSSELL 2000 INDEX   (RUT) OPENING  560-550 RUT JULY BULL PUT SPREAD (15 contracts) Sell 15 July Puts at 560 strike price
  Buy 15 July Puts at 550 strike price


Total Credit 0.45 per contract


Potential Profit $675.00


 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $565.00 CME Group Inc. (CME)


OPENING 260-250 JULY BULL PUT SPREAD (15 contracts)
 

Sell 15 July Puts at 260 strike price


Buy 15 July Puts at 250 strike price


Total Credit 0.40 per contract


Potential Profit $600.00
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $262.50


 MINI -NASDAQ 100 INDEX (MNX)


OPENING 170 – 160 JULY BULL PUT SPREAD (15 contracts)


Sell 15 July Puts at 170 strike price


Buy 15 July Puts at 160 strike price


Total Credit 0.35 per contract


Potential Profit $525.00
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $172.50


S&P 100 INDEX (OEX)


OPENING 445 – 435 JULY BULL PUT SPREAD (15 contracts)


Sell 15 July Puts at 445 strike price


Buy 15 July Puts at 435 strike price


Total Credit 0.40 per contract


Potential Profit $600.00 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $447.50






As always, Trade Happy and Trade Smart

Trade Alert

Here's something for investors beaten down by the market's sharp declines this spring: The Dow Jones industrial average just had its best two weeks since November.

  The Dow's gain of 16 points on Friday was relatively modest, but it capped a surge of 5.2 percent over the past two weeks that puts the average nearly halfway back to the high for the year that it reached on April 26.

  Stocks had a longer winning streak earlier this year, an eight-week stretch that ended in late April, but those gains were more gradual. Then a sharp drop in May and early June brought the Dow down as much as 12.4 percent below its 2010 high, a decline that market analysts call a "correction."

  The debate now is focusing on whether that correction phase is over. A correction is generally considered a drop of 10-20 percent from a recent peak. The Dow has risen back 6.5 percent from its lowest close of the year on June 7, but it's still down 6.7 percent from its 2010 high.

  "I don't know that we're totally through the correction," said Stu Schweitzer, global markets strategist at JPMorgan's Private Bank in New York. "I do expect markets to remain quite volatile all through the rest of this year, but I still expect that we're going to end the year higher."

  Minerals companies led other shares higher after gold settled at another record high. Barrick Gold Corp. jumped 3.5 percent, while Newmont Mining Corp. rose 2.6 percent.

  Corporate news also brought out buyers. CVS Caremark Corp. rose 1.9 percent and Walgreen Co. rose 2.8 percent after the two companies settled a dispute over pharmacy prescriptions that had threatened to hurt profits. Dow component Caterpillar Inc. gained 1.4 percent after reporting sharply higher sales.

  The Dow rose 16.47, or 0.2 percent, to close at 10,450.64. The broader Standard & Poor's 500 index rose 1.47, or 0.1 percent, to 1,117.51. The Nasdaq composite index edged up 2.64, or 0.1 percent, to 2,309.80.

  All three indicators posted solid gains for the week. The Dow is up 2.3 percent, the S&P 500 2.4 percent and the Nasdaq 3 percent.

  The Dow posted its second consecutive weekly gain of more than 2 percent. Before that, the Dow had been down for three weeks. The last time the Dow had a two-week stretch of gains that strong was in November 2009.

  Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where consolidated volume came to 4.9 billion shares, versus 4.6 billion the day before. Volume was heavier because of the simultaneous expiration of four kinds of futures and options contracts, which occurs once every quarter.

  Trading was relatively quiet considering the options and futures expirations, which can often bring volatility as traders adjust their portfolios. The week that follows the June expiration is often a losing one for investors. The Dow has posted a loss during that week for the past 11 years, according to the Stock Trader's Almanac.

  Bond prices slipped, pushing interest rates higher. The yield on the benchmark 10-year Treasury note rose to 3.23 percent from 3.20 percent late Thursday.

  The dollar edged lower against the British pound and Japanese yen, while the euro edged down versus the dollar. The euro has regained strength over the past week amid encouraging signs in Europe's efforts to control its debt crisis. Spain had successful bond sales this week, and European leaders pledged to disclose the results of stress tests on banks.

  Crude oil rose 39 cents to settle at $77.18 per barrel on the New York Mercantile Exchange.

  Randy Frederick, director of trading and derivatives at Charles Schwab, said the market's bounce from its recent lows has come too quickly. He said professional traders are building up positions in investments that would cushion their losses if the market fell again.

  "Not that we're going into this big ugly bear market but to go back down to the lows that we were at just a few weeks ago, I think, seems very possible based on what I see," Frederick said. "I see a reason to be a little cautious right now."

  The coming week brings readings on home sales and consumer sentiment. The Federal Reserve also will meet on interest rates.

  Gold settled up $1,258.30 an ounce, a gain of $9.60. Barrick Gold rose $1.56, or 3.5 percent, to $46.38, and Newmont Mining climbed $1.57, or 2.6 percent, to $61.25. That’s the rap on the news: The Market came through for us this cycle with 100% profit on all spreads.  All our June spreads expired worthless.   JUNE POSITIONS

STOCK	TYPE		STRIKES	CONTRACTS		CREDIT		CLOSE
RUT	Bull Put	500 - 510		15		.60		0.00
CME	Bull Put	240 - 250		15		.50		0.00
RUT	Bull Put	520 - 530		15		.40		0.00
MNX	Bull Put	150 - 160		15		.35		0.00
OEX	Bull Put	410 - 420		15		.35		0.00
CME	Bull Put	250 – 260		15		.35		0.00

PROFIT OF	$ 2175.00

Let’s start with some new July spreads.  We are going to the well one more time with the stocks and indexes we had last month, since all of their charts will show here an opening to make some more money. CME is sitting where we’re using the same spread for July as we had in June.  The others have new strike prices, but are still close to where we had them for June.  NEW TRADE ALERT (4) Please Note: This is a Day Order and Limit Order. RUSSELL 2000 INDEX   (RUT) OPENING  560-550 RUT JULY BULL PUT SPREAD (15 contracts) Sell 15 July Puts at 560 strike price
  Buy 15 July Puts at 550 strike price


Total Credit 0.45 per contract


Potential Profit $675.00


 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $565.00 CME Group Inc. (CME)


OPENING 260-250 JULY BULL PUT SPREAD (15 contracts)
 

Sell 15 July Puts at 260 strike price


Buy 15 July Puts at 250 strike price


Total Credit 0.40 per contract


Potential Profit $600.00
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $262.50


 MINI -NASDAQ 100 INDEX (MNX)


OPENING 170 – 160 JULY BULL PUT SPREAD (15 contracts)


Sell 15 July Puts at 170 strike price


Buy 15 July Puts at 160 strike price


Total Credit 0.35 per contract


Potential Profit $525.00
Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $172.50


S&P 100 INDEX (OEX)


OPENING 445 – 435 JULY BULL PUT SPREAD (15 contracts)


Sell 15 July Puts at 445 strike price


Buy 15 July Puts at 435 strike price


Total Credit 0.40 per contract


Potential Profit $600.00 Once Filled, Use a Conditional Order: Use a Stop or Buy Market if Touched Order if stock reaches $447.50






As always, Trade Happy and Trade Smart

Spread Update Stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy's health after an unexpected drop in retail sales.
 

National Semiconductor Corp rose 5 percent to $14.21 a day after it forecast margins and revenues above estimates after a horrible 2009. The Philadelphia Semiconductor index rose 1.4 percent.

  "The macro news has been increasingly negative, but you still have some companies reporting good forecasts, and people start to think (selling) got a bit overdone," said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com in Shrewsbury, New Jersey.

  "National Semiconductor made a positive announcement. That's why you're seeing the strength primarily in tech," he said.

  Even so, the volume was lackluster, indicating little conviction that the advance will continue next week.

  The Dow Jones industrial average gained 38.54 points, or 0.38 percent, to 10,211.07. The Standard & Poor's 500 Index rose 4.76 points, or 0.44 percent, to 1,091.60. The Nasdaq Composite Index  climbed 24.89 points, or 1.12 percent, to 2,243.60.

  For the week, the Dow rose 2.8 percent, the S&P gained 2.5 percent and the Nasdaq advanced 1.1 percent.

  COLD DAY FOR RETAILERS

  U.S. retailers' sales unexpectedly fell in May for the first time in eight months, the U.S. Commerce Department reported.

  But a jump in a consumer sentiment index to a near 2-1/2-year high in a preliminary reading for June tempered fears of a slowing economic recovery. The consumer sentiment reading came from the Thomson Reuters/University of Michigan Surveys of Consumers.

  Consumer-related shares were the hardest hit, with Home Depot down 1.5 percent at $32.22, and Procter & Gamble, down 1.5 percent at $61.01, weighing down the Dow industrials. The S&P retail index slid 0.2 percent.

  But commodity-related companies also gave support to stocks, with the S&P materials sector up 1.2 percent.

  U.S. Steel Corp jumped 3.8 percent to $44.82.

  VIX FALLS

  In another bullish sign, the S&P 500 found technical support around the 1,077 level that marks its 14-day simple moving average. The benchmark posted its first back-to-back close above its 14-day SMA since late April.

  The CBOE Volatility Index, a gauge of investor anxiety, fell 5.8 percent to settle at 28.79, its lowest level since May 13.

  Big-cap pharmaceutical companies' shares also advanced after Barclays Capital upgraded the sector to "positive" from "neutral," citing the revenue potential of new products. Pfizer Inc was the Dow's top percentage gainer, up 3.7 percent at $15.46.

  U.S.-listed shares of BP Plc  climbed 3.6 percent to $33.97 as UK officials made supportive comments about the company, even as scientists doubled estimates of the Gulf of Mexico's oil spill.

  About 7.31 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, the lowest in more than two months and sharply below last year's estimated daily average of 9.65 billion.

  Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 11 to 4, while on the Nasdaq, about five stocks rose for every two that fell. That’s the news rap for this weekend: The market gave us what we’ve been looking for with these two up days we’ve seen. Has anything changed to cause this up turn? Europe doesn’t seem to have improved their situation, and over the weekend, Japan has been added to the debt mess too, with the speech that their Prime Minister gave.   BP with their gulf mess is still making headlines with talk of this lasting 2 to 3 more weeks. There have been words spoken from the British government that they will back BP through this mess, though Britain is also on the list of European governments having problems with their debt load. So what are we looking at? We think we’re looking at a relief rally and some bottom fishing. Whatever we want to call it, it couldn’t have come at a better time for our spreads. Well, we may have found a bottom here, but as with all things to do with the market, it could change in a heartbeat. Our spreads have now added to their cushions, and it looks like we can just sit back and relax to the finish line this cycle. We will be looking for July spreads next week, so keep your eyes open for when they come. So let’s take a look at our spreads. JUNE POSITIONS

STOCK	TYPE		STRIKES	CONTRACTS		CREDIT		CLOSE
RUT	Bull Put	500 - 510		15		.60
CME	Bull Put	240 - 250		15		.50
RUT	Bull Put	520 - 530		15		.40
MNX	Bull Put	150 - 160		15		.35
OEX	Bull Put	410 - 420		15		.35
CME	Bull Put	250 – 260		15		.35

PROFIT OF

$ 2175.00

1. RUT 500 – 510 BULL PUT SPREAD (15 contracts) RUT CLOSED AT $649.00 Today ( 139.00  points away from our put spread) Profit potential of $60.00 per contract Contingent Stop Order set at $515.00 2. RUT 530 – 520   BULL PUT SPREAD (15 contracts) RUT CLOSED AT $649.00 Today ( 119.00 points away from our put spread) Profit potential of $40.00 per contract Contingent Stop Order set at $535.00 The RUT broke through 640 going the other way over the last two trading days, which his put us in a great spot to just sit back and relax on this one with only 4 trading days left. With the big drop in May, the RUT is setting up to make us some money over the summer months. 1. CME 240 – 250  BULL PUT SPREAD (15 contracts) CME CLOSED AT $302.45 Today ( 52.45  points away from our put spread) Profit potential of $50.00 per contract Contingent Stop Order set at $255.00 2. CME 260-250  BULL PUT SPREAD (15 contracts) CME CLOSED AT $302.45 Today ( 42.45  points away from our put spread) Profit potential of $35.00 per contract Contingent Stop Order set at $265.00 CME had a big move on Thursday so the small loss on Friday doesn’t amount to much. With 5 days left we think we can coast out on this one also. MNX 160 – 150  BULL PUT SPREAD (15 contracts)  MNX CLOSED AT $184.72 Today ( 24.72 points away from our put spread) Profit potential of $35.00 per contract Contingent Stop Order set at $162.50 The MNX has traded much like the RUT and has left us with another money maker going forward. So we can relax with this one also going into the last 4 days of this cycle. OEX 420 – 410  BULL PUT SPREAD (15 contracts) OEX CLOSED AT $493.02 Today (73.02 points away from our put spread) Profit potential of $.35.00 per contract Contingent Stop Order set at $415.00 The OEX also looks to be letting us breathe this cycle. We can see it easily move into the 510 range from here. Again, we only have 4 days left here also.  We have started looking into July for prices to setup our spreads, so keep your eyes open for them coming. As Always – Trade Happy, Trade Smart.