Markets on the Rebound, Correction Over?

Wednesday, February 17, 2010

  • The Dow jumped 170 points yesterday (1.68%) as the euro bounced and the dollar took a beating. Seemingly every CNBC pundit I listened to has officially declared the correction to be over. Commodities had a nice day higher with gold surging 2.75% to close at $1,120 an ounce.

  • Overseas markets followed renewed US optimism with Tokyo gaining 2.72% and London trading up almost 1%. US futures are trading higher by 0.6% in premarket. I'm not convinced the correction is over but looking back over the past few weeks, there were 2 days to make money that came out of nowhere, and while I was on vacation. Since then, bearish bets have been tough and unrewarding.

  • Lewis Black's book, me of little faith, is apparently a flop after I watched him present the book six months ago at a Barnes & Noble on the Upper East Side for $24.95. This weekend, I found the book in B&N's oversupply of "bargain books" for $4.98, damn! Yet, if you can laugh at religion and enjoy extreme sarcasm, the book has definitely kept me laughing. I also picked up How I Became a Quant which has been excellent so far.

  • The Olympics rolls on. Why do have very little interest in these games? I think it's because I've already got my focus on the World Cup. Can't wait for US v. England!

  • George Soros has doubled his investment in GLD to 6.2 million shares as of the end of last year. After the re-test and hold of previous all-time highs on the dollar's bounce, a new high in gold will confirm a renewed bull market and we could see a significant pick up in momentum. A lot of smart money flowing into GLD.

  • Walgreen's (WAG) bought Duane Reade this morning for $1.075 billion. This is a big departure from their long-time organic growth strategy as compared to their rival, CVS Caremark (CVS), who through acquisitions has returned far greater to shareholders with a 34% five-year return compared with Walgreen's 20% loss over five years.
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