Hot to Invest

NEW YORK (MarketWatch) -- U.S. stocks traded higher in afternoon trade Tuesday, with well-received earnings from State Street Corp. and other regional banks helping ease concerns about financials a day after Wachovia Corp. posted an unexpected loss.
Floyd-an unexpected loss? A child would know differently.

The gains come as early quarterly results are still trickling through, with technology in particular weighing down the broader market ahead of bellwether Intel Corp.'s earnings report after the close.

"We didn't get another Wachovia today," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank.
Wachhovia (WB)posted an unexpected quarterly loss Monday, a stark reminder of the credit-market troubles crippling results in the financial sector and elsewhere.
Floyd-more fodder by children writing this….the credit market crisis is far from over.
Crude futures hitting a new high near $114 a barrel also lifted the energy sector and provided support to the market.

Floyd-the ridiculous profits of the oil game are what is dampening the market and part of what limits spending.

Yesterday the market hit tops of 12,428, bottoms of 12,256 and really allowed no trading of merit. Many of our subscribers wrote “hot to invest” and “ready” to trade. We are experiencing flat lining, which makes the average investor think that option premiums are eroding; in fact, it’s the fear in the market that slows premiums, and makes the bid/ask so varied.

Every time there is FEAR in the market, and flat lining is occurring, it’s the sign of a big bump day…of something to come. Some “thing” (earnings, data, etc.) will trigger what is already going to occur.

The odds of a downturn to our lower Dow projections are now at 45%. We remain in a market with little bias, and no directional emphasis. Two way trades are still likely, but expect tighter profits, and in /out trades.