Europe Closes Strong

European equity markets have closed strong, up 3.6%. If they have put in a bottom they will likely drag us higher.

3 comments:

Anonymous said...

Well, we didnt hit the 1190 area I was hoping for , yet. I believe the rally continues,(not straight up) until at least 1190 by mid June.

good luck

Anonymous said...

why do you think pfe isnt moving?

Tsachy Mishal said...

None of healthcare is moving. Healthcare usually does well during corrections. The fact that European countries told drug companies they are paying them less as part of the austerity measures really killed the whole healthcare space and so they did not perform well during this correction. Healthcare usually underperforms on rallies but maybe they will catch a bid because they were clobbered so badly.

It is very difficult to own these companies when governments can walk up to them any day and say we are paying you less. But there is a price where they are cheap. They are probably cheap here but given the dynamic above that is just a guess.