Trade Setups for May 10, 2010

Heading into the open, the futures are soaring, in a way none of us have seen in a long time. As of this writing the S&P is up over 50 points, the Dow right at 400 points, and the Nasdaq over 80 points. That is no exaggeration whatsoever!

Currently, I am holding shares of the S&P UltraLong ETF (SSO), which I bought near the close on Friday. As a result I am set to do very well on this one. I am still debating my approach to it once the market opens, as to whether I sell on the strength, or whether I dramatically tighten my stop-loss and implement a trailing sell order. It's not everyday I have to deal with 5% gap ups at the open, so pardon me if I am scratching my head a little bit.

The only piece of news outside of the $1 Trillion bailout fund setup by Europe (which is the main driver in the markets today), is Ben Bernanke speaking at the University of South Carolina at a graduation ceremony. Don't expect him to say anything earth-shattering today, as I expect everyone will just let the market have its way today.

Ultimately, I am bearish on this market, and the problems that we are seeing with Greece is just the tip of the iceberg. I may even look at creating a few short positions heading into today's close - We'll See.

Here are Today's Trade Setups.

LONG: American Reprographics Co. (ARP)

Click Here to See Today's Short Setup.