Thursday, August 02, 2007

Looking For The Oversold Bounce To Continue

The market is slightly positive this morning, after a very strong finish yesterday. The market rallied hard in the final 20 minutes yesterday, making for a strong, positive reversal on what was shaping up to be another negative day.

Volume ran below Tuesday's levels on the NYSE, so that trend hasn't changed. That is, we have seen volume rising on the down days and moderating on up days. Bulls want that relationship to reverse. We would like to see some higher volume up days, followed by modest volume on the down days. But this takes time, as we are still in a correction.

There was a buyout this morning, as Fiserv (FISV) will acquire Checkfree (CKFR) for $4.4 billion in cash, a 30% premium. So deals aren't dead. And while private equity had been bidding for any and everything, corporations are still flush with cash and very willing to do their own deals.

There were also some strong earnings reports last night and this morning, from the likes of SBUX, DIS, VIA, and NOK.

Asia was mixed overnight, but more markets rose than declined. Bond yields are steady this morning, and oil is up slightly after a big negative reversal yesterday. Given the strong run in oil prices, I would not be surprised to see crude take a breather for a while.

1 Comments:

At 2:34 PM, Blogger Molly said...

Fiserv buying CheckFree sounds like a pretty good deal. This should put Fiserve at the top of the data/tech providers. I read that some director and executive relationships might have come into play here (see NewsVisual article: http://www.newsvisual.com/newsvisual/2007/08/fiserv-and-chec.html).

 

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