After yesterday drubbing and with the housing report coming out negative this morning, the stock market is recovering slightly today. As usual Google (GOOG) leads the pack. It is up >$8.00 today.

Research in Motion (RIMM); the maker of Blackberry has been going up nicely as well; a trend that has been developing since late April. The comeback-kid Amazon (AMZN) gives back a little today. The stock has gained over 50% in the last month.

Apple (AAPL) has been unstoppable since breaking its resistance in the beginning of the month. It hit its 52-week high 2 trading business ago.

One stock that has been trending down is Chicago Mercantile Exchange (CME). It is a $500+ stock, pretty comparable to GOOG at $482. Well, the stock has been on a tear in the last 4 years. Up more than 10 folds. Look at the chart. It is an option-trader paradise. It swings wildly from month to month. Let’s see the closing price at the option-expiration.

May 18, 2007 $519.90

Apr 20, 2007 $555.89

Mar 16, 2007 $527.00

Feb 16, 2007 $574.76

Jan 19, 2007 $577.33

Dec 15, 2006 $533.00

In the last 6 months, only one time it didn’t happen. Although during that period, the stock hit as high as $596.30 (Jan 24) and as low as $547.46 (Jan 30), a span of 4 trading days. Just imagine. Is that mouth-watering or what?

This brings me to the MAX-Pain Theory. If you’ve been trading options for a while, I am sure you’ve heard of it. I will talk about this in another article. I will share some successful trades using this strategy.

Anyway, it’s 10.24 PT (13.24 ET) so there are less than 3 hours to go before the end of trading session. Heading into a long holiday weekend, I expect the stock to give back some of the gains.

Have a wonderful weekend and drive safely …

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