Now it is starting to look like a rally!
Nice strong finish across the board, Dow 11K (finally), Nas comfortably past 2,300 and S&P just flying to 1,300 – I love it! The Nasdaq performed so well I am hardly concerned that Microsoft and Apple sat this session out.
Gold hit $550 today and closed at $549 so hang on to those stocks! Do not be swayed by the massive manipulation that goes on in that market, they have to go up eventually. BVN was again a shining star in the sector.
Oil even behaved itself by coming down a bit to $63ish, not enough to hurt oil stocks, so you could not have asked for better conditions.
Homebuilders are rallying on a sudden burst of positive analyst reports saying the housing sector will still be hot in ’06. If that is true, we need to start planning our Dow 12,000 party real soon!
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Everything worked today so I’ll just do the highlights:
Google did hold the $460s but only after a real scare in the afternoon. I shorted it in the morning at $471 but chickened out when I had to go to a meeting at 1pm so I missed the nice drop but there was no way I was going to leave this trade unattended! Just an hour later I would have had a double on my put…
If you followed Friday’s TOTD IBM through you either stopped out at $2 for a 22% profit or you hedged and sold the Jan $85s for $1.60 which would have netted you a gain of .55 against a .50 drop in the Feb $85 call for another 7% gain even though the stock went $1.22 against you! Hedging is fun!!!
BCRX flew up 8.4% today.
EK went up 5%, great timing on this morning’s call as it gave us a great entry.
GENZ gave pretty good preliminary results but expectations were very high so we will have to see how they are digested. My attitude is that 22% revenue growth is pretty good, even if it does miss expectations by a bit.
BBY continues to rock with another 1.5% gain.
SYMC tacked on another 2%, now in a confirmed rally.
Back on 11/14 I said SNFX could be bigger than big if their product works and apparently it does – the stock gained 11% today on a very strong chart. Risk here is maximum though!
PLAY did not disappoint with a 5.5% gain for the day, also giving us a good entry point in the morning.
BSX did get walloped, also with a great entry this morning while, surprisingly, JNJ jumped in the afternoon – perhaps because they are going to walk away from GDT as I advised them!
TYC had a huge 3.5% move today so now they have to split the company up…
GM went crazy today with 31M shares changing hands as the stock rocketed close to 8%. Tomorrow will be the real test as they are now resting right at the declining 50 dma of $22.50.
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TASR went hog wild as well with an 8% gain, strong all day. At the same time as Taser is putting all their troubles behind them, theoretical competitor STIY looks like it is breathing its last which will leave the field wide open.
While it is hard to put a value on Taser it certainly has the potential to turn into a monster with 6 Million potential customers out there and no competition to speak of. The next leg of the Taser story will be lawsuits brought against municipalities who shoot people with guns when they could have used a taser.
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Really, really, really think about CY tomorrow if you don’t already have it!
