EMC (EMC - option chain) shares are rising today as rumors are swirling that Oracle (ORCL) might be interested in buying EMC. This speculation pushed EMC higher by as much as 6% earlier this morning, but the stock's price has settled down some now. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on EMC.

EMC opened this morning at $20.94. So far today the stock has hit a low of $20.75 and a high of $21.58. As of 12:25, EMC is trading at $21.06 up 0.76 (3.7%). The chart for EMC looks bullish and S&P gives EMC a positive 5 STARS (out of 5) strong buy ranking.

From time to time, Avon Products (AVP) becomes the topic of buyout rumors. And yes, this week it happened again. Actually, investors are giving it some credence. In Tuesday morning trading, the shares of Avon were up 5.6% to 35.03. That's only a couple bucks away from its 52-week high.

The buyout buzz comes from a report in the Daily Mail. According to this UK paper, it appears that L'Oreal is looking at a bid that could be as high as $44 per share, or $19 billion.

Qualcomm (QCOM - option chain) shares are rising today on rumors that Apple (AAPL) has decided to use chips made by QCOM in its fifth-generation iPhone and second-generation iPad devices. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on QCOM.

QCOM opened this morning at $45.07. So far today the stock has hit a low of $44.77 and a high of $45.61. As of 12:25, QCOM is trading at $45.28 up 0.97 (2.2%). The chart for QCOM looks bullish and S&P gives QCOM a positive 4 STARS (out of 5) buy ranking.

Rumor has it -- again -- that dot.bomb era survivor E*Trade (ETFC) may be acquired by none other than Charles Schwab Corp. (SCHW) for an initial offer of $24 a share. This chatter moved the stock price marginally Friday up 72 cents to $15.27. Although as of Monday morning the rumors are unsubstantiated, trading in stock options has heated up on the call side.

Bantering about the inevitable acquisition of E*Trade has been an annual pastime on and off for the past 10 years, but they resurfaced again in earnest after the financial crisis creamed most companies and institutions. E*Trade is currently capitalized at $3.37 billion. If the rumors bear fruit, the Schwab offer represents approximately a 60% premium to the current price.

Don't look now, but the shirt in your back could be worth more today. Why? Cotton prices are surging due to supply shortages.

Rumors often drive commodity prices. Pakistan is experiencing the worst flooding in history. Pakistan is the world's fourth largest grower of cotton. Another rumor of frost in China added to the rally. China is the world's largest cotton producer. India is placing high export duties on cotton, thus fueling the rally, according to data reported by the Financial Times.

The tail-end summer heat has been heavily attributable to the mergers and acquisitions blaze. Companies are putting their cash to work on public companies fetching discounted equity prices in a market environment favoring safety (e.g., gold and bonds).

Recently, Hewlett-Packard (HPQ) edged out Dell (DELL) for the 3Par deal award. With an eye toward the future, HP displayed their powerful desire to own a piece of the data storage and cloud computing pie. Since Dell ended empty-handed, it's only a matter of time before the next stock is a tech heavyweight's prime target.

Technical analyst, Jim Stallakis,writing for Businessweek. com says cocoa could fall 12% in the next two months.

Technical analysts use charts and various indicators to arrive at their predictions. One key tool that most traders use are support and resistance levels. Support levels are just that. They support the price at a given level. Resistance levels are upside points were trading occurred, but then backed off. Breaking support levels usually means further downside movement. Conversely, breaking through resistance levels signals a rally.

Dean Foods (DF - option chain) shares are up a significant amount for the second consecutive day after rumors resurfaced that Groupe Danone SA could be investigating an acquisition of the company. This rumor first came to light back in March, but since then DF has seen its share price cut by a third, which could make the company even more attractive now. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DF.

DF opened this morning at $10.55 So far today the stock has hit a low of $10.50 and a high of $10.75. As of 12:15, DF is trading at $10.63 up 0.41 (4.0%). The chart for DF looks neutral and S&P gives DF a neutral 3 STARS (out of 5) hold ranking.

Apple (AAPL) is going to have a big day Wednesday, which could include announcing a new Apple TV with Netflix (NFLX) support, and the fourth generation of the iPod Touch.

According to a report on Bloomberg, Apple will be announcing the new Apple TV with streaming Netflix videos today at its music-themed press conference.

Reportedly, Potash (POT) is considering joining forces with global firms that would be able to present an offer to compete with BHP Billiton's (BHP) $38.6 billion bid.

According to The Wall Street Journal, people "familiar with the matter" stated that there could be a global consortium in the works to make a counteroffer for Potash. BHP has gone straight to Potash shareholders with its offer of $130 per share.

You don't often see these moves in commodities, but when they happen, look out below. Two days ago, September wheat closed "limit up" -- 60 cents. That means that the market stopped trading. You could not enter a buy order.

On Friday, just the opposite happened. Wheat fell the daily limit of 60 cents. September wheat closed at $7.25 3/4 per bushel. A "limit down" move means that the market stops trading. At that point you cannot enter a sell order and are locked in. On Monday, if the market opens lower but not limit down, you can sell out but at a big loss.

Trading in the wheat market has become frantic. Russia is suffering the worst drought in 50 years, causing severe damage to their wheat crop.

Traders at Glencore, the world's largest commodities trader, have asked Russia to halt exports. If Moscow imposes an export ban, Glencore could declare a "force majeure," a clause that allows them to cancel deals due of reasons beyond their control.

This a story about rumor and weather. Wheat prices have skyrocketed to within 16 cents of their 2009 high, closing at $6.61 per bushel. The 2009 high was $6.77. Prices have surged 56% from their June lows.

You are no doubt asking: "Why such a big jump in prices?" The key word is drought, specifically the drought in the major growing areas of Russia, Ukraine and elsewhere in the Black Sea area. The drought is so bad that rumors are flying that Russia will limit wheat exports, driving purchasers to the U.S. According to Macquarie Group, parts of Europe also have been hit with drought, and Canada had excessive rain at planting time.

Genzyme (GENZ - option chain) shares are rising today on a report in the Wall Street Journal which says that Sanofi-Aventis SA (SNY) could make a formal takeover offer to GENZ's board that could be worth about $20 billion. SNY declined to comment on the report. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GENZ.

GENZ opened this morning at $70.31. So far today the stock has hit a low of $69.97 and a high of $70.97. As of 11:55, GENZ is trading at $70.09 up $2.09 (3.1%). The chart for GENZ looks bullish and S&P gives GENZ a positive 4 STARS (out of 5) buy ranking.

BP (BP) shares opened up over 4%. The Wall Street Journal reported the oil giant is in talks with U.S. oil and gas company Apache (APA) and other companies over potential asset sales. The talks are part of the steps BP is taking as it is considering how to pay for the massive oil spill in the Gulf of Mexico.

The Sunday Times earlier reported that BP is in talks to sell up to $12 billion of assets to Apache. The WSJ said on Sunday a deal with Apache could be up to $10 billion and could include stakes in BP's Alaskan oil fields. The Times also mentioned that the Obama administration told Exxon Mobil (XOM) it wouldn't interfere with a bid.