December 5th Watchlist

Broad indexes are still choppy & remain under pressure this morning despite the major newswires citing optimism in China. The Shanghai Composite index rallied 3% off news that hinted further QE could be down the pipeline if needed. ADP employment news hit the street today at 8:15 AM coming in on target with expectations at 118K jobs added. Most were in the private sector of course. That news failed to push the markets in any direction. The indexes will be key to watch today in order to see if we break out in a particular direction rather than chop around in a tight range like yesterday. It will be important to assess that as quickly as possible off the open to prevent unnecessary directional trades that aren't moving with any conviction. Bank of America

is gapping up $.06 this morning after a lot of activity was seen on the $10 Weekly Calls expiring December 7th. The Call buyers are expecting this to move over $10 by the end of this week so prepare to see a lot more action in those calls for the next few days and the weeklies going forward. Citigroup (C) announced 11K people will be getting layed off and the stock is up just under 1% here and looking bullish in the premarkets. Expect a lot of call buying in the $35 & $35.50 Weekly Calls expiring December 7th.