Monday, August 15, 2011
Just another merger monday
I found today's market action to be quite constructive. We had another 100+ up day, the third in a row. Futures popped last night on Japan's better than expected 2nd quarter GDP report and stayed elevated into the morning hours when the Google news came out. It seems momentum is building in this rally and there should be a continuation of this positive trajectory. Oftentimes, when we get three big up days in a row it, the rally usually lasts awhile perhaps for the next two weeks or so! Of course a lot depends on what happens between French president Sarkozy and German chancellor Merkel tomorrow in their meeting on the European debt crisis. Markets need assurance that the two leaders will do whatever it takes to solve the problem. Any dithering on their parts will likely result in another global equity rout. I anticipate a positive outcome to these meetings however, and a continuation of the recent rally. I will be looking to purchase more AAPL and perhaps some XLE in the next few days. We could trade up to around 1250-1270 on the SNP going forward. Best of luck and happy investing!
Disclosure: Long NLY and AAPL
Warning: All recommendations made in this article are my opinion only. Please do your own due diligence before purchasing any stocks!