It goes without saying that predicting the market reaction to news is an arduous task.  In early action we have the equity actually testing $2.90 and even popping up above it, a move that I did not expect.  This presents an interesting dynamic.  I still feel that this equity can run down to test the 13 day average at about $2.80, but right now we are seeing a different story.

At this point I have to cede to the thought that there are many that saw a Karmazin exit as an opportunity to capitalize and buy in.  The volume is strong, so if this is a head fake it is happening with a ton of cash.

My initial thoughts of a sell at the open and wait until $2.80 are now severely challenged.  I have been cautious for about a week now on the concept of active trading and have been consistent that trying to pick up a nickel meant being willing to lose one.

Going into this week I had felt that the pending conference call would have the street finalizing positions this afternoon and had written about the fact that all CC bets would be in today.  What I am seeing now is that this action is making that happen.

I see this as bullish.  Essentially the street is betting on a call that will deliver the goods the street wants.

Watch volume closely to see if it begins to evaporate.  I will keep a close eye on the action.