Well, we rallied as expected. Good day all in all. I think just about everyone was long something. Good spirits going into the weekend, with thoughts of dung rallies dancing through all the bulls heads.
MRK puked it up for me. Enough for a 30% return on my options. JNJ will probably be the next to roll over. PFE looked relatively weak. All in all, the PPH was down again as money flowed into the techs. However, once people realize the techs are headed back down, the drugs may get one more chance at a rally.
Banks looked ok for most the day. JPM/CMB sold off in late day trading. Makes me suspicious with all this talk of emergency rate changes. Opens it up to the possibility of happening this weekend. This will help the BKX rally to it's 52 week high, where I would be very inclined to short. JPM/CMB merger is scheduled for the 1st of Jan. Another good time for a short entry, IMO.
One day rally of 10% pretty much returned the bulls to their old, reliable ways. VIX was down. Everyone was shopping around for calls in their favorite MOMO plays.
In other words, still no fear, still no capitulation. In the bull a 10% drop was considered a "correction". Me thinks a 10% rally in the bear is similar.
~Jason |
