Here's Another Yogi Reference (not the Bear but Berra)

Cusick's Corner
"Slump? I ain't in no slump...I just ain't hitting." That's a quote from Yogi Berra and if you talk to someone who is long, this is what the trader would most likely say. While the market did finally break the weekly losing streak, you can't ignore that we have seen some decent distributions and traders will be looking forward to month-end fund redemption reports. Remember that this market can still continue to chop up, working off the oversold conditions. I now want to wish all the dads out there a Happy Father's Day and one special shout out to my mentor & role model (plus Xpound reader) -- Happy Father's Day Dad! Thanks Pop!

The tone of trading turned a bit more upbeat on Wall Street Friday morning after European markets moved higher on news Germany and France have agreed on terms to help debt-ridden Greece. The recently battered euro recaptured .7 percent against the dollar. The domestic economic news was mixed. The University of Michigan reported that its index of consumer sentiment declined to 71.8 in June, from 74.3 at the end of May. Economists were expecting an increase to 74.5. However, the latest list of leading indicators for May increased by .8 percent, which was better than the .2 percent that was expected. Both the Dow Jones Industrial Average and the NASDAQ were holding gains along with the euro into midday. Trading turned a little choppy in afternoon action and news that Moody's had placed Spain on review for a possible downgrade seemed to weigh on trading in the final hour. Still, the Dow Jones Industrial Average is up 60 points heading into the closing bell. Disappointing earnings news from Research In Motion (RIMM) is weighing on the technology sector, however, and the tech-heavy NASDAQ is down 5.5 points.

Bullish
United Technologies (UTX) added 22 cents to $84.57 and was one of twenty-three Dow stocks to finish with gains today. Meanwhile, options volume in UTX included 14,000 calls and 2,425 puts, which is more than twice the average daily volume for the name. July 85 calls, which are .5 percent out-of-the-money, were the most actives. 4,710 traded against 1,081 in open interest. Another 3,939 July 87.5 calls changed hands. Open interest is 940. There was no stock specific news on United Tech today, but the company updated its 2011 guidance at a Deutsche Bank conference yesterday. The forecast might have been upbeat enough to inspire some upside call buying in UTX the following day.

Bullish trading was also seen in Southwest Airlines (LUV), Freeport McMoran (FCX), and CNO Financial (CNO).

Bearish
Regions Financial (RF) added 11 cents to $6.27 on the session and options volume rose to 2.5X the average daily. 17,000 puts and 2,690 calls traded on the regional bank. The stock edged higher and there's been no company-specific news in RF lately. Yet, July 6 puts, which are 4.3 percent out-of-the-money and expiring in four weeks, saw heavy trading. 5,000 traded in morning action at 17 cents per contract. Later in the day, several more blocks traded at 19 and 20 cents. At the end of the day, 15,700 traded and sources tell us that buyers were initiating much of the trades. Shares are down 11 percent during the month of June and today's options action seems to reflect concerns about additional losses in RF over the next four weeks.

Bearish flow also surfaced in Clearwire (CLWR), a Perfect World (PWRD), and Harbin Electric (HRBN).

Index Trading
CBOE Volatility Index (.VIX) finished down .95 to 21.78, but added 15.5 percent on the week and 41 percent so far this month. Market volatility has been increasing during the month of June on worries about the European Debt Crisis and deteriorating economic data on manufacturing, housing, and jobs. Meanwhile, trading in VIX options has been busy throughout the week and the trend continued Friday. 348,000 calls and 97,000 puts traded in the VIX options pits today. VIX July 30 calls were the most actives. 117,670 traded. July 20 and 25 calls were heavily traded as well. The high volume in these short-term call options is a sign that some investors are worried that volatility might remain high in the weeks ahead and are therefore taking bullish positions in options on the volatility index.

ETF Action
CurrencyShares Euro Trust (FXE) saw increasing volume today. FXE, which is the exchange-traded fund that tracks the EUR/USD currency pair (x100), finished the day up $1.26 to $142.54 after the euro made some strides against the buck today. Options volume in the ETF included 43,000 puts and 12,000 calls, which is about 2.5X the average daily. July 140 puts were the most actives. 11,700 traded. Some investors were buying the contract (as well as July 140 - 136 put spreads). Although shares moved higher today, the euro ETF is down 2.5 percent in the past eight days amid worries about the European Debt Crisis and problems in Eurozone countries like Greece and Spain. Bearish traders in FXE are probably bracing for additional losses for the European currency in the weeks ahead.