Friday, April 25, 2008

Mister Softee (MSFT) Doesn't Live Up To Expectations

I have been a Microsoft (MSFT) skeptic for several years, because everytime the stocks starts to rally, it fades. There was a lot of hype coming into this quarter, and the stock started to pop this week. But alas, last night's earnings were nothing to write home about, and the stock is down -6% today, dragging down the Nasdaq with it.

Financials are up again, after Amex (AXP) beat analysts' forecast. The brokers are also higher, led by Goldman Sachs (GS). Although the big pop yesterda was in Merrill (MER).

Oil is spiking again today after news of shots being fired on an Iranian ship. Who knows if this stuff is true, but it is what it is. Gold is up slightly also.

Asian markets were mixed overnight, and China only gave back less than -1% of the previous day's 10% spike; Bond yields are higher again, with the 10-year yield up to 3.85%. Looks like the recession fears are fading. And the VIX is below 20, a level that is more often than not supportive for the markets.

long GOOG


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