Bear Stearns (BSC) Rumor

There is a rumor going around right now that Warren Buffet is considering taking a 20% stake in Bear Stearns (BSC).

The news has traders giddy, and the stock is spiking $12 higher, or +10% on the news. This is also helping push the XBD index up nearly 3% on the day.

On an unrelated note, the CME is also spiking $25, or nearly +5% on the day. I have not seen any major news to account for the surge.

The market is turning higher, and putting more pressure on those underinvested or leaning short. With quarter-end only a couple of days away, this buying pressure could persist.

Glad I put more money to work last week.

long CME