Office Max proved its strategy to be working when today’s first quarter results shot its shares up 11% to 4.88, this is stronger than expected; industry leader staples reports next week.

Another hot stock is FreightCar America with railcar deliveries jumping to a the highest they’ve been since 2008, with a spike to 16% they finished unexpectedly up only 3% at 21.25. Fossil(FOSL), who continues to disappoint again this quarter missing target sales, were pummeled down to 47.83 a 40% crash, their day’s high was 93.60. Canadian Stocks also took a hit and the Toronto stock exchange finished it lowest of the year down 155.81 points to 11,704.85, the European elections really prove to be having a global ripple effect.

Break-even:  I break-even on this trade if AAPL closes at $550.20 by January 28, 2013.

Unprofitable:  I lose money on this trade if AAPL closes under $550.20 by January 28, 2013.  The most I can lose on this trade is the amount I paid for the Spread, $50.20

Reason I Like This Trade:  I always want to get LONG AAPL in one way and I think this sell-off is a great way to get LONG.  I want to make a bet that AAPL will close by the end of the higher than where it is trading now.  I have the odds in my favor, because even if AAPL sells off, I can make money on this trade.  I think this is a great even money bet/position.  

UPDATE 5.9.2012  With AAPL rallying to $569, this Spread is currently worth $52.20, but since I put this trade on until 2013, I will leave it on for more potential profits.

UPDATE 5.9.2012  With AAPL rallying to $573, this Spread is now worth over $54, but since it is a position not a trade, I will leave it on for more upside potential.  

UPDATE 5.11.2012  With AAPL rallying to $573, this Spread is now worth over $54, but since it is a position not a trade, I will leave it on for more upside potential.

UPDATE 5.21.2012  With AAPL selling off and now rallying, this Spread is worth right around $47, but since it is a position not a trade I will leave it on.

UPDATE 5.22.2012  With AAPL rallying another $10 and I remain short term bearish, I took the trade off at $52 and hoping for another sell-off in AAPL to put on a similar position.

Read more about reason by www.keeneonthemarket.com

Big movers in the positive this morning were that of Generac(GNRC) up over 25% to 28.99 and Vitamin Shoppe(VSI) up close to 12% to 49.84 compared to the opposite of Furmanite Corp(FRM) down 18% to 4.90 and Callon Petroleum down over 15% to 4.94. US Treasuries extended their gain today with 30 year bonds up a point forcing 10 year yields down to a three month low of under 1.82%. Discovery reported lower than expected quarterly profit and its shares took a tumble of 6.5% hit by competition from the Oprah Winfrey Network, its first quarter earnings were down nearly 30%.

The Goldman Store sales reported a big slip of -0.8% leaving the year on year rate down to 3.3%, the slip is due to people spending mostly on staples such as groceries.
In commodities both Oil and Natural gas are in the red this morning as are silver and gold; in the short term the decline in the euro from European turmoil has forced the decline in gold.
The turmoil also encouraged a drop in the Euro of .2% to 1.3027 near the bottom of the range its been in for the past year.
The Nikkei gained little from its three month low yesterday up 62.51 points to 9181.65 while the Chinese Hang Seng declined .25%

VRTX stayed strong and finished up over 55% while CTSH stayed down over 19%
Other big movers were EIPL up 75% to 13.02 and INSM up 51% to 4.10 and in the reverse were PETS down almost 20% to 11.07
PepsiCo finished up 1.2% to 66.69 upon news that Morgan Stanley upgraded its view on the US beverage industry to attractive
The S&P financial sector finished up despite the European worries with BAC up 3% to 7.97 and Goldman Sachs also finishing up 1.2% to 110.29, Analysts point the positive to a possible bailout for the Troubled Spanish bank Bankia as a reason for the boost
In reports today Consumer credit outstanding jumped 21.4 billion in March from 9.8 billion in February leaving us at 2.54 trillion, the gain is concentrated mostly with student loans rather than revolving credit, however that also rose

Break-even:  I break-even on this trade if AIG closes at $30.76 by May 18, 2012.

Unprofitable:  I lose money on this trade if AIG closes under $30.76 by May 18, 2012.  The most I can lose on this trade is the amount the Spread can be worth $1 minus the Price I sold it for $.24 for a total of $.76

Reason I Like This Trade:  AIG has been very strong this year and the only reason it is selling off today is because the government announced it will be selling $5 billion in stock.  It has had a nice pop off the $30.50 low and I think it can hold that level.  In this strategy, I make money if AIG rallies, is flat, or even sells off a little bit.  

UPDATE 5.8.2012  Even though the stock has not sold off with the stock market, this Spread is currently worth the same price, $.24.   With time on my side, I will leave this trade on.

UPDATE 5.9.2012  With AIG looking strong even during the sell-offs, this Spread is worth $.23, but I will try to capture ful value and watch to expire worthless.

UPDATE 5.10.2012  With AIG rallying today by more than $.40, this Put Spread is now worth $.12, good for a double.  I will try to squeeze every penny out of it and watch it go to zero

UPDATE 5.11.2012  Time is on my side and AIG should close above $31, so I will leave this trade on.  

UPDATE 5.14.2012  AIG is selling off today, but the stock is still holding the $31 level.  With 4 days left after today, I think the selling could be over for the stock market and AIG.

UPDATE 5.15.2012  This trade gave me a little sweat this morning as the stock sold off under $31.  I will monitor this trade, but unless I think the stock market is headed way lower, I will leave this trade on until expiration.

UPDATE 5.16.2012  As long as AIG closes above $31 on Friday, I do not have to worry about this position and as long as it stays above $30.76 this trade will be a winner.  

UPDATE 5.22.2012  Just because a trade is a loser, doesnt mean it was not a good trade.  I still think this trade was a good risk vs reward, but expired worth $1, but it worked out better than being LONG the stock.

The Nasdaq has been wavering back and forth across the barrier while the Dow has remained slightly
negative so far

On the commodities side both gold and silver are down just under 1% and in energy oil was hit yet again
down 2% to 96.60 while natural gas has been steadily rising up about 2.5%

Financial are bobbing around currently in the green despite AIG down close to 5%