Wednesday, June 13, 2007


The bulls came out to play and the bears ran away. -

The bulls put on quite a show today and from the get go pretty much wrecked any chance the bears had of gaining control. Strong retail sales and a Beige Book reading signaling growth revitalised the bulls. The Dow up 187 , S&P 22+ and the Nasdaq 32+ was the final count. Mining,Oil, construction, utilities, banking and transports led the way while airlines and healthcare lagged.

Chipmakers are suffering the effects of declining prices. Prices have been effecting chips for quite a while and I believe a bottom is in.

Blockbuster low price subscription strategy is validated by Wallstreet and the stock price is soaring. Netflix though continues to lose ground. NFLX though might actually be a good buy based on constant buyout rumors. The stock price is only a few percentage points above 52 week lows.

Semel of Yahoo continues to defend himself and his lofty $71 million pay package against irate shareholders. A smart hedge fund or private equity outfit may consider buying into YHOO forcing Semel out and getting the company turned around. YHOO suffers from poor leadership and this Semel guy is a Silicon Valley boob. He doesn't know jack about tech and his leading style is the kind you learn from the back of cereal boxes.

Oil prices are up and thus the oil sector outperformed as gasoline inventories fell. Oil needs to break decisively in a single direction. This $61 to $67 dance is getting annoying.

A nice clip showing what happened to market bears. Or in this case a solitary bear cruising the streets of LA in his Monte Carlo.

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