Most likely Cleveland-Cliffs will not disappoint on earnings but if it does it could get ugly. Trade recommendation: Buy 2 May 155p and sell 1 May 165p +.50. Any upside should make a small amount any big downside will do very well. The worst spot for the stock with this position would be a close at 155 at May expiration.

BA

Why should BAC continue with its purchase of CFC when the government is giving handouts to white knights? If it does go through with it, the price will be reduced. Sell any of the 5 level calls and buy 5 level puts.

BA

The unemployment number came in at a better than expected -20k.  The Dow is up over 100 pre-market.  Bonds and the curve are taking it on the chin.  Who cares if people can’t pay their mortgages.  Let’s party like its 1999!  The big test will be if we can keep this momentum on the upside.

BA

The DJIA spent the day taking back all the ground it lost after the FED meeting yesterday to close above 13,000 for the first time since the first week of trading in 2008. The S&P 500 closed above 1,400 for the first time in 4 months as well. While these indices made intermediate term highs on less volume than yesterday, the NASDAQ is trying to lead the stock market higher. It closed above its 200 day moving average for the first time since early in the year, and even did it with slightly more volume than yesterday. As we said a couple of weeks ago, we’d be more optimistic if there was a little more follow through on these rallies.

JD

The Fed cut rates 1/4 point yesterday as expected down to 2%. The most likely scenario for rates going forward is a long pause. The Dow sold off on the news. After being up triple digits for most of the day, the market closed with modest losses. We probably won’t do much today with unemployment looming tomorrow.

BA