A trend of light news and maybe never selling a dull market continues to hold court with bulls. As of 11:05 ET the S&P500 (SPY) is tacking on 0.45% and testing a potential bubble top or setting up a "Barack-Out" depending on whom one asks.

President Barack Obama's $900B / 10-Year healthcare package is making some noise with headlines in Thursday's first half, but trader reaction has been nothing less than unspectacular. Likewise, better-than-expected but still weak claims data which continues to emphasize a "jobless question mark" with regards to the economy, has barely (somewhat surprisingly) made an impact this time around.

Rounding out the passing headlines which have failed to motivate, a mid quarter update by Texas Instruments (TXN) saw the company boost its Q3 estimates above views [$0.37 - $0.41 vs. $0.35]. Nonetheless, intraday action finds bulls and bears in gridlock at 25.11.

In mover and shakers and where stocks are free to go about their own business in an otherwise lethargic session, shares of aggie (MOO) chemical giant Monsanto (MON) are off 5.65% after gapping below its coveted and properly-aligned support of the 50 and 200-Day MAs. The pesticide rounding up bulls below terra firma is a profit warning announcement.

Monsanto now expects its FY09 profits to come in at the low end of prior guidance at $4.50 - $4.50 but bracketing consensus views of $4.41. A bit more troublesome, for 2010 the company sees a profit decline of about 30% to a range of $3.10 - $3.30 versus forecasts of a more optimistic earnings schnitzel of $4.12 per share. "BOOyah!" In sympathy, the not so long ago flavor of the day from Mad Money (and a favorite of this strategist), Potash (POT), is off 1.80% and wedged between those blue and red lines of notice.

For bulls still flying high, the airline group (CAL, DAL and LCC) is soaring to percentage gains. UAL (UAUA) is in the cockpit with its near 19.50% gainer to 7.70 following an upgrade to "Overweight" at JP Morgan. With OPEC ministers confirming to stand pat on production and Black Gold (USO) quiet in today's session, maybe bulls are strapping in and breathing easier on that front as well.

On the option side of things, Comcast (CMCSA) is seeing the most unusual contract activity relative to its 20-Day MA for stocks in the SP-500. Entering the second half, more than 49,000 contracts have traded versus typical action of about 7,700. Shares are up fractionally near 27.10 but testing its highs set in May. In trader's vernacular, bulls and bears could have their eyes on a potential double top.

For their part, option traders are most active in the front month ATM 17 call. On volume nearing 29,000, the contract is changing hands around $0.35 to $0.40 on more than double the open interest. While there's but six days remaining in the contract, given the run over the past month, that option does afford some an existing bull to stick with a trend that might become a "Barack-Out!" while sacrificing little if the "Bubble Top" winds up holding.

Chris Tyler
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
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The information offered here is based upon Christopher Tyler's observations and strictly intended for educational purposes only, the use of which is the responsibility of the individual.