YHOO)/Microsoft (NASDAQ:MSFT) merger collapse and rumors of trouble with the BoA (NYSE:BAC)/Countrywide (CFC) deal stopped bullish investors in their tracks Monday. But, bears were only able to do a little damage as volume and breadth were unremarkable.Sharply higher energy prices, the Yahoo (NASDAQ:
There was plenty of news to digest yesterday but I think many
investors are scratching their heads and looking over their shoulders not quite
sure what to make of things.
accounts for the light volume and uninspiring breadth.
It seems a little strange that we’ve rallied as high as we
have with the onslaught of negative news continuing.
But, the powers that be have the microphone
and the big stack to play with.
aren’t cheap based on PEs but there’s a lot of cash on the sidelines looking
for a home and rationalizing investments.
We’re in Boston
now and spent Monday with State
Street going over some of their products and ideas
about the future.
Today I do some
interviews and then give a talk Wednesday before heading to Chicago.
Digest maintains positions in: IYR, TLT, TBT, XLE and ILF.