Recap

The markets rallied to a higher close after some serious weakness early in the session. Semiconductors and oil led the way while banking continues to be weak. Going long SKF might be a good hedge.

I had huge gains in my SNDK MU OVTI HANS BBND VCLK HOKU longs though SBUX gave me a bat to the head. LVS and NYX are also giving me ulcers.

Starbucks is a world class company and the way I see it, SBUX could go down to $20 and I will continue buying till its 10% of the fund. Based on my calculations, SBUX will be $50 + within 3 years as international growth boosts the coffee maker. If I can get an average price of $25 , and double it in less than 3 years, thats a 25% annual rate of return. Not bad for a low risk investment.

Panera Bread Co. is also on my radar . Under $50, PNRA looks to be a low risk, high return investment. Like Starbucks, Panera is a world class company with excellent management.

Better than expected economic data played a role in todays rally. Both the Philly Fed Survey and the Leading Indicators are showing an economic rebound.

Speaking of short squeezes, HOKU is really killing those betting against this green energy/solar cell maker. This company has a low float, 50% insider ownership,low institutional ownership and a short position that has multiplied in recent days. The perfect recipe for a short squeeze.

Two Lawmakers are asking the SEC to postpone Blackstone's IPO. Maybe Waxman and Kucinich want in on a piece of the action.

The S&P 500 closed above the 1520 resistance level which is a positive sign.The S&P bounced of its 50 day moving average today after intial weakness. Major resistance exists at 1540.