Option Investor
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Looking to cover

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Yesterday we felt the QQQ's offered traders and opportunity to make some money to the downside and this morning we're going to be looking to do just that. At the open of trading, trader's should lower their stop in their QQQ put/short to $0.50 above the opening trade. Last week we talked about the "make up" of the QQQ's and how Intel (NASDAQ:INTC) was one of the big four in this index. It's INTC's "bad news" today that is working in our benefit and traders should monitor that stock at the open along with their QQQ trade. The reason I want to set such a tight stop on the stock is that bond YIELDS are rising.

U.S. Jobless Rate Holds steady

U.S. Unemployment held steady at 4.2% in February. Payrolls rose by 135,000 during February, less than the revised 224,000 gain for January. Factory employment fell for the seventh consecutive month as companies such as Intel (NASDAQ:INTC) decided to reduce production. Overtime hours were the lowest since November 1992. Analysts had expected unemployment to rise 4.2% and in increase of 75,000 jobs.

Average Hourly earnings Rose

Average hourly earnings rose 0.5%, or 7 cents, to $14.10 last month from $14.03. Analysts had expected hourly earnings to rise 0.3%

Bond YIELDS higher

After the release of this mornings economic data, we've seen bond YIELDS rise. YIELDS on the 5-year (FVX.X), 10-year (TNX.X) and 30-year (TYX.X) are higher across the board.

Futures and Fair Value

S&P futures are lower this morning and are currently down 11 points. NASDAQ futures are lower by 56 and Dow futures are down 78. Fair Value for the S&P 500 is $14.37 with buy programs set at $15.88 and sell programs at $12.52. Subscribers wanting to learn about Fair value and buy/sell programs should visit www.programtrading.com

Jeff Bailey
Staff Analyst

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