I guess when sentiment is so bad that’s when we get a reversal. Today’s gain was very very very impresive. Should we call this morning the bottom and the beginning of the fouth quarter rally? I’m not going to get ahead of myself, but I will definitely do some buying tomorrow.

Especially the homebuilders and the internet stocks, I think the bad news of home builders are baked in as I mention earlier this week. What can I say about Yahoo besides Yahoo. I bought myself 5 contracts before the earning release and going to buy more tomorrow.

Amgen and eBay’s earnings did not impress and sold off in the after hour. I am bearish on the biotechs because Gilead also sold off today after a great quarter. I would keep an eye on eBay to see how it finished tomorrow. The Skype acquisition still doesn’t sit well with investors.

To recap, I like Internet and homebuilders, but stay away from biotech.

This entry was posted on Wednesday, October 19th, 2005 at 9:41 pm and is filed under Market Recap. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.