Chasing Performance

Good morning. Premarket futures are showing continued positive sentiment as investors try to extend this week's already impressive gains. Over the past four days, the S&P 500 has climbed +2.5%, the Dow +1.9%, and the Nasdaq +3.6%. This will be the sixth weekly gain in the past eight weeks.

In focus today include another rally in oil prices, better than expected housing starts, some mixed reports from retailers, and more M&A chatter surrounding the airlines. The final economic data point of the week will be a report on consumer sentiment at 10:AM.

Premarket gainers: SUTR, HOKU, CPSL, JRJC, AKNS, PCOP, MEDX, ACGY, ASTI, EFUT, CSUN, DRYS, NED, CHIP, AAP, LMC, ALMN, JWN, KMX, HLIT, JASO, YTEC, BMC, DROOY, LMT, PRGN, NOV, KFT, WFC, DNA, WGOV, & CNTF.

Premarket losers: KONG, ONXX, CPWR, OSIP, ATEA, LWAY, EMKR, GSI, QTM, BZH, CLNE, MNT, EXAR, NCOC, GA, ASTI, MNT, KSS & ALD.

Traders will be watching for further price confirmation of this week's gains with the next overhead target set at S&P 1450 with stops set below the 1400 to 1420 support zone. A rally from here will do two things: 1) it would kill the remaining shorts and suck in all of the non-believers and, 2) negate any concern that we've only been trading a counter-trend rally. Let's see if the bulls have the mojo to press even higher.

Have a great options expiration Friday!