Monday, July 21, 2008

FIG Rallies and Broad Market Update

As I mentioned in the previous post, FIG was on fire Friday and it felt like it was still going to go higher. Sure enough, the stock moved up in a straight line all the way up to 11 before correcting back down and spiking at the end. Surely, a rally to 11 (and the second straight 7% + day) was enough to alert holders that gains needed to be taken.

We have Apple, American Express, and more down after hours on either disappointing earnings or guidance. This news should weight on stocks tomorrow especially the financials and tech (which I'm still bearish on-just tech don't want to touch financials for more than a trade). Google came down further today (now around 460), I'd look to take some profits into the negativity tomorrow--it's just down so much now and it's also getting ready to fill the gap. Pharma got hit today off of Merck and Shearing-Plough. The minute I saw that they had delayed reporting earnings and their stock was down pre-market, I thought things were going to get ugly. That was a sure sign to cut losses or take profits and run. Then they rallied later on! What a short opportunity! Now, Merck is up after hours while SGP continues to get hit. I'd stere clear of the sector in favor of biotech.

Links
- Roche and DNA via thestreet.com
- Who is next?: The report Dick Bove's getting sued over

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