I took the day off from trading today. I want to see more economic data tomorrow, especially the Consumer Price data not so much to confirm the inflation problem - anyone who spends money knows prices are up - but to see how the numbers are massaged and adjusted. I'll explain more tomorrow when the CPI arrives.
It's a darn good thing our President is right on top of our energy situation. Bush says wants action on gasoline plan by end 2008. 2008... isn't that just about the time he'll be leaving? The action plan comes as US retail gasoline prices hit record high: AAA.
Wal Mart posts earnings tomorrow morning. I was surprised to see May50 calls trading today. When was the last time WMT rallied over $2 after earnings - back in the 1990s? WMT is going to rally $2+ to get to the $50 strike tomorrow? Yep, that's what those call buyers are hoping for tonight. I'll eat one of their snack bar hot dogs if that happens. With gasoline above $3/gal, I can't imagine ceo Lee Scott (I think he's still employed) pounding the table about a bullish sales outlook. The only thing that would get WMT above $50 after earnings is if WMT announced a spinoff of something like Sam's (if that happens the hot dog eating thing is null and void).
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