Fat Boy, I don't think the market cares if we bomb Saddam Insane or not. We went into the weekend totally oblivious, except for a belated pop in oil stocks.
Thursday was absolutely insane in oils - they went DOWN sharply in panic selling and then recovered almost fully. For example, MDCO was down 20% at one point. I bought some MDCO cheap and sold it on Friday. All day Thursday, CNBC was talking about how the oil market didn't care about Saddam. Friday things changed, and all they could talk about was how oil should keep ratchating up.
Thursday made me wonder if Saddam was shorting oil stocks. :)
Although I took my profit in MDCO, I picked up some MRS and some GW on Friday as a hedge. GW is a gamble, as it is an IPO with a high PE. MRS is a recent splitter, trades pretty thin, and has just started to come off the bottom.
I think that a lot of investors must be hedged in various ways (oil stocks, puts, covered calls, etc.) for the market to have run-up almost right to the close on Friday as it did, as the news that we were likely to take action was already out. |
