Editor's Note:

The market is manic depressive. It can't decide which way to go and what is actually good vs. bad news. When it closes at its low it springboards up and then closes at its high. The next day it reverses again. So whether today's little capitulation move into the close will result in an immediate reversal back down on Friday (following the jobs numbers) can't be known yet but there's a reasonable setup for it. But no matter, we have our plays and we'll stay disciplined and honor stops if they're hit before our target prices.

I am not adding new candidates to the newsletter at this time. However, if you followed James' suggestion to consider a strangle on Starbucks (SBUX) before tonight's earnings announcement it could work out on Friday. Earnings were good and their stock price took a big jump after hours--up about a dollar from its closing price of 19.70 before pulling back slightly.