the senior market strategist for trading advantage is scott bauer. let's talk with him. so scott, we were just talking about this bubble with china. how is that playing down there on the floor this morning? > > yesterday, that coupled with the long weekend thinking about the sequester and all the negative news out there, you would have thought that the market could have easily been down 1%, 2% yesterday, and we saw that out of the gate. and then as the day progressed, it's almost like the little boy that cried wolf - i will be quite honest with you, that is what traders are saying down here. this negative news out of china, the sequester, it's like, "oh, ok, it will get fixed." so traders are really believing that there is still momentum to the upside. more importantly, or just as importantly, the retail investor that still has so much cash on the sidelines, those are the ones that keep popping into this marketplace. so as a trader down here, it is very difficult to fight this trend. mid-day yesterday, that reversal we got, it wasn't this sharp reversal, it was just somet

scott bauer of trading advantage joins us now for a look at the trading day. good morning to you scott. > > good morning angie. > what matters most to traders: cypress, or the fed? > > i tell you that cypress is behind us except for their definitive announcement, which is about to come out three or four hours from now about what they are really going to do. but, you look over the weekend, and on sunday, that is when everyone was first concerned about it. by the end of the trading day yesterday, it was almost an afterthought. everyone is really focused on bernanke and the fed announcement on wednesday. > which takes us to the big banks: some people were concerned about the exposure of u.s. banks to cyprus, but that seems like it's almost becoming very minimal at this point. > > yeah, and i'll tell you what the sentiment on the floor is really, is that in the the long term, if this is really going to be an issue in europe outside of cyprus and some of the other european banks, people are going to flock out of those european banks, and where are they going to put

scott bauer is there. scott, how are you wrapping up the day? >> you know what?raders covered any shorts that they had, looking for possibly even a little rally going into the session tomorrow. was oil market. this is down two bucks earlier today. this closed up and watch that tomorrow. sandra: we sure will, scott bauer, thank you very much. david: irrepressable stock market. shares of aeropostale rising from the floor of the nyse. find out why, nicole. >> that's right. we're looking at aeropostale, because aeropostale according to private equity firms and "the wall street journal" saying it looks attractive to some of these private equity firms. that's why we're seeing it jumping today. what is interesting that the retailer generates plenty of cash flow. that certainly sounds like good news. relatively debt-free. take a look where it closed today. up 3.25%. oh, we made it big for you. right there in action. with the current management seen as underperforming a bit, takeover offers, $20 a share. 45%, premium, could come down the pike? that is enough chatter to ma

scott bauer of trading advantage joins us now for chart talk. always good to have you on the show. let's start by looking at blackberry. the stock was down significantly at one point yesterday off of some downgrades. people are very troubled about this launch of the new phone coming on. what do you think? this is a classic case of buy- the-rumor, sell-the-news. everything leading up at the end of last week to this launch looked like blackberry maybe was going to trade in the $20s even - i mean, the upgrades, the interest from the marketplace, the interest in the option market was unreal. and then, i will tell you what angie, on friday, last friday, all of a sudden, we saw a lot of put buyers come into the marketplace, and a lot of put buyers looking at the downside weekly puts that expire at the end of this week. and lo and behold, the $14 strike was the big one. we traded down to, what, $13.20 yesterday? and now goldman came out and downgraded the stock. earnings come out thursday, going into the long weekend. volatility on the options are through the roof. it is anyone's guess he

scott bauer of trading advantage joins us now to pick up on a stock that we mentioned earlier in the show. it is navistar. good morning to you. > > morning angie. > this stock had a tremendous ride yesterday, up above $6. is this stock a buy at current levels? > > you know, the one cautionary thing that i would say about navistar is, going into yesterday, there was huge open interest in the weekly march 28th calls, so anybody that was short that call going into this earnings report had to cover the stock, and it was a big panic to cover the stock. there was an extra few hundred thousand shares of stock that people had to rush to. now, if things are in place and if they can maintain the cash balance that they say they are going to through the summer months, which is typically their low point of the year, then it is probably fairly valued here. but again, i would let the stock settle in first. give it a couple days. if it stays in the $30, $31 range, it is probably a buy for the long-term. > and this is a stock that maybe somebody wants to look at down the road, because if the company

scott bauer of trading advatage joins us from the trading floor. good morning to you, and happy friday. > > hi. good morning angie. > the dow has rallied every friday so far this year. will it happen again scott? > > i don't see any reason that it won't. yesterday we saw the banks actually get into this rally here: j.p. morgan, goldman sachs, citigroup... and with options expiration being later today, what you are going to find is if the market does in fact rally, even just a little bit, there is going to be a lot of short-covering going into the close of the market. people that are short options with strikes just above where maybe their stocks are trading, are going to have to cover. so i would look for volume really to pick up if the market continues this uptrend later today. > what is the stock market telling us about the economy? yesterday we had better-than- expected news coming from the labor market. jobs are being added. is that giving a boost to the market? > > you know, all signs point to that we are just in this low- volatility grind upwa