U.S. futures were higher after President Obama announced late Sunday night that Osama bin Laden had been killed by U.S. military in Pakistan, almost 10 years after he orchestrated the Sept. 11 attacks. The news immediately pushed markets around the world and the U.S. dollar higher on optimism his death will decrease the risk of terror threats around the world.
Investor optimism from the Bin Laden news comes after weeks of positive earnings reports and the renewed
pledge to stimulate the economy. The gap up leaves the next short-term target for S&P 500 at the 1410 to 1450 levels.
The news also sent crude oil lower nearly 2%, the most in 2 weeks, on speculation that Bin Laden's death will result fewer terror attacks and decrease political instability, hopefully reducing supply risks in Middle East and North Africa.
Silver futures were down as much as 13%, the largest intraday drop since October 2008 on the news the
raised margin requirements for traders of the precious metal managing speculative positions.
Chinese internet stocks like
are hot, many delivering solid earnings but there are some risks. First , the positives 32% of the population in China is online as of June 2010 - according to S&P Equity research services. Internet usage is moving to smartphones - Sony Ericsson said China could have 800 million smart phone users by 2015 as the
Chinese population is wealthier; there are almost 900 million cell phone users in the country -- huge growth potential.
There are some negatives though as U.S. companies are also not really allowed to operate in China leaving room for a monopoly by Chinese companies. Operating in China is hard, lots of oversight and bullying by the Chinese government - big risk factor many analysts don't think are priced in.
This week traders will be focused on post earnings stocks like
Research In Motion
, while investors have already taken profits in post-earning cloud stock movers in
The old traders adage sell in May and go away will be consistent theme in the new month, but investors should focus on the action and not the calendar.
Check out T3Live.com's Virtual Trading Floor to follow these traders and their live portfolios on real-time throughout the day! Take a free trial.Scott Redler is long APPL, GLD, LVS, MGM, WYNN, CRM, CIEN, VMW, WFC and short SPY, SLV and REDF.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.