Friday, February 20, 2009
Stocks Rebounding into Final Hour on Less Extreme Financial Sector Pessimism, Short-Covering, Bargain-Hunting
Posted by Gary .....at 3:06 PM
BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Education longs, Biotech longs, Medical longs, Computer longs and Emerging Market/Commodity/Index shorts. I covered some of my (IWM)/(QQQQ) hedges and some of my (EEM) short today, thus leaving the Portfolio 75% net long. The tone of the market is negative as the advance/decline line is lower, sector performance is mostly negative and volume is heavy. Investor anxiety is high. Today’s overall market action is bullish. Nikkei futures indicate a -46 open in Japan and DAX futures indicate an +41 open in Germany on Monday. I expect US stocks to trade higher into the close from current levels on less financial sector pessimism, bargain-hunting and short-covering.