Monday, December 04, 2006
Merger Mania
There was a strong move up on all the indexes today on the back of all the merger news announced today. The SPX tacked on 12.41 points to finish the day on 1,409.12. I indicated at the weekend that the bulls seemed desperate to push the markets ever higher and for today they succeeded. The move up helped us greatly and our position is very nicely in the green and we are close to being delta neutral with 8 days to go.
The reason the markets moved up is because merger activity points to optimism and liquidity in the markets, which tends to push stocks higher. On Monday, a number of deals were announced the main one being Bank of New York announcing it will purchase Mellon Financial.
Going forward for the rest of the week there is going to be released lots of economic data which will help traders decide whether the US economy will have a hard or soft landing (ie avoid recession and just have a gentle slowdown). Friday's job report will be the key report. Hopefully by then we won't really care what it says.
Until next time.
The reason the markets moved up is because merger activity points to optimism and liquidity in the markets, which tends to push stocks higher. On Monday, a number of deals were announced the main one being Bank of New York announcing it will purchase Mellon Financial.
Going forward for the rest of the week there is going to be released lots of economic data which will help traders decide whether the US economy will have a hard or soft landing (ie avoid recession and just have a gentle slowdown). Friday's job report will be the key report. Hopefully by then we won't really care what it says.
Until next time.
# posted by Paul @ 6:58 PM 
