Wednesday, November 08, 2006

More Heatburn For The Bears

For some reason, people hate when I make those sort of headlines. But today had to really hurt the spirits of the bears. I mean, the short-sellers were out telling us how if the Dems captures Congress, it would be terrible for the market and we would see stocks plunge.

Only stocks rallied into the election. Worse, after a breif selloff this morning due to the headlines about the elections, the market slowly recovered all day and actually finished solidly in positive territory.

Energy stocks gained the most, while semis declined. Small-caps also led the way vs. their large-cap bretheren. Breadth was solid, and improved from yesterday. More importantly, volume levels rose, making for a third straight accumulation day on the Nasdaq.

This is very bullish, and is likely exacerbating the performance anxiety among many professional investment managers.

After the close, CSCO reported solid results, and the stock is up +7% after-hours. There are a lot of suppliers whose stocks do well when CSCO says good things. So this could help stocks again tomorrow at the open.

See you bright and early!


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