MSFT And MOT Help Send Neutron Jack Out With A Bang

The
bulls are certainly enjoying their day in the sun, as market internals continue
to reflect the institutional and retail buying pressure that took us up triple
digits in the first half hour of trading. The bulls were hoping for a single bit
of good news from somewhere, ANYWHERE, and they got considerably more than they
could have expected. 

   

First, Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating)
announced
stronger-than-expected sales, not earnings, and coupled that good news with an
olive branch to the US anti-trust division. MSFT says PC-makers will be able to
remove Internet Explorer icons from the desktop of all versions of Windows and
add third-party icons to XP. MSFT surged back into the 70s and set the table for
Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating)
, which had some bullish
comments on its conference call last night. 

   

Next, General Electric
(
GE |
Quote |
Chart |
News |
PowerRating)
posted record
second-quarter profits on the strength of industrial and manufacturing
operations. With full year earnings looking to be above $1.45 per share, Wall
Street celebrated by giving Chairman Jack Welch a going-away party. 

   

When you couple GE’s move with MSFT, you can see where the strength in the Dow
is coming from. One of the few negatives for traders was the slump in volatility
for the broad market, as the VIX fell just under 7%, reflecting growing
confidence that this rally could continue. 

Bullish $ Weighted Call
Action

Symbol

Call

Volume color:black”>

Call

Volume color:black”>

$W

Call Vol color:black”>

$W

Put Vol color:black”>

CSCO

130,441

6,861

418,357

13,623

GS4,354

540

45,496

1,919

ALTR

13,997

1,712

39,261

4,075

MOT20,715

3,292

35,835

3,393

TXN10,965

1,840

26,699

5,678

ORCL

9,911

1,935

22,551

3,059

GMST

3,234

1,311

14,516

1,759

Bearish
$ Weighted Put Action

Symbol

Call

Volume color:black”>

Put

Volume color:black”>

$W

Call Vol color:black”>

$W

Put Vol color:black”>

EBAY

2,466

2,249

6,083

19,965

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the use of Hamzei Analytics proprietary options analytics)