Some less actively traded names seeing bullish order flow: International Coal (ICO), Natural Gas Index Fund (FCG), SAIC (SAI) Bearish order flow: James River Coal (JRCC), Evergreen Solar (ESLR), and Rosetta Resources (ROSE) Post Earnings: STEC, Transocean (RIG), Autodesk (ADSK), Garmin (GRMN), Toll Brothers (TOL), Dollar Tree (DLTR), Trina Solar (TSL), Century Aluminum (CENX) Pre-Earnings: Foster Wheeler (FSLR), Salesforce.com (CRM), Express Scripts (ESRX), Cameco (CCJ), Excel Maritime (EXM), Dr. Pepper Snapple (DPS) Ex-div.: GE, McDonald’s (MCD), Lockheed Martin (LMT), Sara Lee (SLE), Retail Holders (RTH)

Millipore (MIL) shares launched 22.5 percent higher Monday after Bloomberg reported Thermo Fisher (TMO) might make a bid for the company. MIL has added another 6.4 percent over the past two days. Today, with shares up $4.10 to $92.97, another 35K calls and 5340 puts traded. March 90, 95, and 100 calls are the most actives, as some speculators take positions amid hopes for an announcement before the March expiration (23 days). Others might be closing positions after Bloomberg reported that GE said its unlikely to buy MIL because deal would be too big — perhaps diminishing hopes for an eventual bidding war. Meanwhile, implied volatility is easing after the dramatic spike Monday, down 10 percent to about 36 today.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

20,000 Jan 2.5 Puts were sold for 26 cents on the NYSE-Arca exchange this morning as shares traded near $3.85. Might add to the 30,000 contracts open interest at the strike that were created when a seller collected 40cents to open the position on August 3rd as shares traded near $4.80. If so, the total open interest of 50K is a significant position, representing 5 million shares in a name with avg daily stock turnover less than half that.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Posted 9:55. After falling 10 percent on a BofA/Merrill downgrade yesterday, PALM is up 12 cents to $8.32 and early flow seems bullish. 1350 May 9 puts were sold at $1.70 and 1150 May 7 puts sold at 89 cents. Meanwhile, 3500 Mar 9 calls were bought at 45 cents.

Update: 11:05: Briefing says there’s chatter that PALM might be in a joint venture to develop a tablet.

CBOE Volatility Index (.VIX) is up .09 to 21.46 and not far from session highs. VIX saw a spike at 10:00 after the latest home sales numbers fell well short of economist estimates. Sales declined by 11 percent to a record low annual rate of 309,000 in January, down from 348,000 in December and significantly worse than the 354,000 expected. Homebuilders (XHB) buckled on the news and trading has turned mixed. About 300 S&P 500 stocks are above water, 185 lower, and the SPX is up two points. Meanwhile, trading in the VIX pits is quiet. The top trade is a buyer of 1000 April 24 puts at $2.85. 8000 calls and 1700 puts traded on the volatility index so far.

Early indications point to a flat open, with cautious trading expected ahead of New Home Sales data and testimony from Fed Chairman Ben Bernanke. Thirty minutes before the opening bell, stock index futures hint at modest early gains for both the Dow and the NASDAQ.

With no economic stats to guide the early action, focus will turn to new home sales numbers at 10:00 a.m. eastern time. Economists expect to see improvement to an annual rate of 354,000 homes in January, up from 342,000 the month before.

Then, Bernanke is in the hotseat in front of House Financial Services Committee, with testimony scheduled to begin at 10:00. The head of the Federal Reserve is likely to stick to script in prepared remarks, but the question and answer period could hold some fireworks after the Fed unexpectedly moved to raise the discount rate last week.

Bonds are in wait-and-see mode ahead of the event risk. The benchmark ten year Treasury is down 3/32nd and yields 3.7 percent.

The dollar is flat at 90.21 against Japanese yen. Meanwhile, the euro recaptured .0036 to 1.3545 against the buck.

Action in the commodities market is mixed. Crude oil added 39 cents to $79.25 ahead of weekly inventory data. Gold lost another $7.2 to $1096 an ounce.

Among the stocks to watch, STEC is down almost 30 percent after guiding first quarter estimates lower late yesterday. The company sees a loss of between 11 and 13 cents per share. Analysts were expecting a 29 cent per share profit.

Transocean (RIG), H&R Block (HRB), and Monsanto (MON) are also lower on earnings news. Software maker Autodesk (ADSK) and homebuilder Toll Brothers (TOL) are seeing post earnings strength. Google (GOOG) is in the spotlight on reports EU antitrust regulators are looking at how the company deals with advertising partners. GOOG slipped .4 percent in pre-market action.