Mid Day Trading Update – Relief Rally

The gap this morning was sold off in the morning but apparently that was a setup to push more people in on the short side before the whole complex moved squarely into positive territory for the day. Investors were able to shrug off dismal earnings reactions in some high profile names like McDonalds MCD, IBM IBM & General Electric GE. Most traders are now debating on the validity of the upticks they're seeing on their screens today. Earnings seem to be the new influence on the broad indexes and it would be in your benefit to start tracking when some of the bigger companies will release their First Quarter results. Monday & Tuesday are light as far as economic data which means the market will look to some earnings for guidance. Netflix NFLX & Caterpillar CAT are two names we often look at here at Sanglucci.com who are reporting on Monday so keep an eye on those two. Markets are now slowly drifting back lower after making an attempt at $155.50 during the morning session. It still remains to be seen whether we want to try again or just kind of stall out for the day. Out of the money weekly options premiums are now dwindling down to zero so if you haven't already capitalize on a credit spread trade I would start winding down on your attempts to get one. Watch the SPY here to see if they hold the $155 area which could mean we're in for a late day rally up to that half level or even further up. If the banks start moving higher I would say there's a good chance of an afternoon rally. Stay tuned for further updates!