Securities Research Services

Wednesday, May 02, 2007

Bulls Respond

Bulls fought back yesterday as bears are apparently out of bullets. This keeps the uptrend in tact and heals a lot of technical damage incurred Monday.

Sentiment figures are mixed, so this won’t be much of a guide for us today. Slightly more puts were purchased than calls, meaning that there is just enough distrust here to keep things afloat. We would be worried if the bulls came back with enthusiasm. Since they did not, we should still have more upside to go in this trend.

The broader market may be relatively flat the rest of the week as institutional money hesitates in front of Friday’s economic data.

Note: Our office will be closed for a personal day tomorrow.

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