Sunrise Technologies International (SNRS - 8-3/8), which makes eye care laser systems, is trading above its 10-day moving average in mid-afternoon activity. The equity has not closed a session above this short-term trendline since January 14. The shares are also poised to record their second straight winning session after reaching their worst intraday mark since November 16 on Monday. On the options front, the out-of-the-money February 5 put has received a great deal of attention today, as its volume has reached 11,520 contracts. Most of these contracts transacted at the bid price in three large blocks of 5,000, 2,000, and 1,100 contracts. These are either put sells or liquidations of 10,814 contracts already open at this strike. This is among the most-active puts on the CBOE.
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Brocade Communications Systems (BRCD - 177) provides switches and software to connect servers with storage devices. This afternoon, the stock is trading more than five points higher, as it is receiving support from its 10-day moving average. Since the company's initial public offering in May, the shares have increased their value by more than 10 times. In BRCD's options pit today, 1,125 contracts have crossed the tape on the out-of-the-money February 200 call. In addition, 3,503 call contracts have traded at the March 200 strike. This is one of the most-active call contracts on the AMEX.
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Walt Disney (DIS - 37-7/16) has made a miraculous recovery of late, rallying from an annual low of 23-3/8 on November 8 to an annual high of 38 achieved last Tuesday. Since achieving this pinnacle, DIS shares have been consolidating sideways just below this level. Earlier today, the equity benefitted from support at its 10-day moving average, a trendline that defined DIS's intraday low earlier today. The stock successfully found support from this moving average and is now trading more than three percent to the upside.
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In an initially muted reaction, the March S&P 500 Index futures contract (SP/H0 – 1416.0) and March Treasury Bond Futures Contract (US/H0 – 93-7/32) failed to make a decisive move on the news of the rate decision. The market got what it expected for the most part, with the Fed Funds rate rising by 25 basis points and cautious comments from the Fed about future risks being tilted toward increasing inflation moving forward. However, the Fed also boosted the Prime Rate by 25 basis points, which few analysts had predicted.
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The action among the sector indices is showing a decidedly different flavor when comparing the action of the five-day periods ahead of the current and previous Federal Open Market Committee meetings. In the past five sessions, the tone has been decidedly bearish among the sector indices with 6 of 27 indices in positive territory. The following are the top four performing indices over the past five days: the PHLX KBW Banking Index (BKX - 764.76), up 6.63 percent; the AMEX Pharmaceutical Index (DRG - 361.3), up 4.82 percent; the Morgan Stanley Healthcare Products Index (RXP - 839.2), up 2.52 percent; and the AMEX North American Telecom Index (XTC - 1543.38), up 1.40 percent. The four indices showing the most weakness over the past five days are: the AMEX Tobacco Index (TOBX - 60.92), down 4.37 percent; the AMEX Oil and Gas Index (XOI - 470.45), down 3.87 percent; the S&P Retail Index (RLX - 923.4), down 3.42 percent; and the AMEX Biotechnology Index (BTK - 438.51), down 3.37 percent.

The leaders and lagging groups heading into the last FOMC meeting were sharply different from the above performance. Many of the sector indices were higher for the five day period ended December 20 with 14 of 27 indices in positive territory. The following were the top four performing indices: the AMEX Computer Technology Index (XCI - 923.5), up 6.55 percent; the CBOE Automotive Index (AUX - 558.8), up 6.11 percent; the PHLX Semiconductor Index (SOX - 818.4), up 5.75 percent; and the AMEX Biotechnology Index (BTK - 438.01), up 3.59 percent. The four indices showing the most weakness were: the S&P Insurance Index (IUX - 558.8), down 5.91 percent; the PHLX KBW Banking Index (BKX - 764.2), down 5.34 percent; the CBOE Gaming Index (GAX - 235.17), down 3.09 percent; and the AMEX Pharmaceutical Index (DRG - 360.6), down 2.35 percent.<
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