Bullish Spirits Are Alive & Well

Good morning. The bullish spirits are alive and well as strong earnings reports (see GOOG, AXP, CAT, HON) and strength in overseas markets indicate a very positive open. In fact, premarket futures are stronger now than at anytime we've seen in the past week which is relatively unusual for an options expiration Friday without any economic news as a positive catalyst.

According to my premarket scan, buyers are favoring shares of JADE, CBLI, AVNR, INFA, NSTK, JASO, EPCT, GROW, RMKR, SMSI, ENZN, FSLR, SYNL, MGRM, CSIQ, PKTR, ISRG, QLTI, GSS, LOGI, LEND, ACGY, NPSN, PALM, and JSDA. Meanwhile, only a few stocks are showing sell pressure like SIRF, RNOW, ENER, EVVV, IVAN, HDNG, and MICC.

Yesterday's strength in the face of trouble overseas has increased confidence in this market and I think that's part of the reason why we're set for a positive open. Some of the more severe overbought conditions we saw earlier in the week have also been worked off a bit. Yet, options expirations are notoriously difficult to trade and a gap open doesn't make it any easier. Waiting for the first hour to pass before making trades looks right to me if you're trying to grind some profits out this morning. Have a great Friday!