US stock futures are have turned slightly higher Thursday morning following another drop in weekly jobless claims. The S&P continues to build nicely above the recent S&P floor. Markets this year have been lead by Tech and small cap stocks, which is a healthier than what we saw last year with the safer Dow stocks leading the way.
It seems like each day we get new tradable set ups for cash flow as our macro positions continue to methodically move up. Do not fight this action, there is way too much money to be made by going with the trend. S&P’s are still trading at a P/E less than the five decade average. If we traded at that average, the S&P would be at Historic Highs.
The world is obviously buzzing about the Facebook IPO, which became official last night when the company filed an S-1. The company is registering for $5 billion initially, but that number is lightly to grow. Morgan Stanley will take the lead on the new issue, which will trade under the ticker FB. Facebook is expected to be valued at between $75-100 billion despite on $1 billion of net income in 2011.
Also helping the market this morning is a decent auction in Spain. The heavily indebted nation raised $6.1 billion at a lower rate than the previous auction.
As far as technical levels for the market, S&P resistance sits at 1330-1333. A daily close above this level opens the door for 1347-1356, then last year’s high of 1370. Support in the S&P is 1312-1314, and the then the important floor at 1303-1306.
Dislosures: Scott Redler is long SPY, OIH, WMT, LULU, CRM, VMW, AAPL, GRPN, AIG, JPM, QCOM calls, LVS calls, DNDN calls, VXX. Short DIA.