Market Surges In Early Trading Ahead of Options Expiration

The market is up big in early trading, ahead of options expiration today. Research In Motion (RIMM) reported strong earnings last night, and the stock is spiking more than 10%. This is helping the overall tech market also.

Oil is back up over $92, and this is supporting the energy complex. This is a strange market, but the big up days have always had both the tech and energy stocks rising together.

The two indicators that I have been harping on are the Yen and the VIX (volatility index). I have noted that the bulls needed to see both of them continue to move lower to help out this rally. Well today they are doing just that.

The FXY (Yen ETF) failed to get back above its 50-day average, and is breaking below recent support today near $88. The VIX is down a whopping -8%, and has broken below the 20 level. Both of these trends should support the Santa Claus rally into next week.

Asian markets were up across the board last night. And the 10-year yield is up to 4.10%, indicating an easing of recession fears.

long RIMM