Monday, April 29, 2013

Monday, April 29 pre-mkt outlook

The /ES closed on Friday at 1576. It opened Sunday at that level, hit a low of 1574 then rallied to a high of 1583.25 at 0800hrs and looks to open around 1582.25.

$JCP is in the news after a couple of news items. It got a $1.8B loan from $GS. It was also reported that a couple of hedge funds have set up to take long positions in the stock. The stock closed at 17.00 on Friday and is trading around 17.75 in the pre-mkt. The 50day MA is 15.24 and the 200day MA is 18.92. 37% of the shares are short, which would require 2.1days for the shorts to cover. It could be a solid play to go long the weekly 18 calls or 18.50 calls.

With the apparent positive market today and $GS sitting at that support level of $144, it could also be wise to play the weekly 145 calls or 150 calls.

I think I like playing the $GS calls first then maybe $JCP calls as far as risk/reward goes.

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