Every Dog

The bears had a few too many chances to short into "resistance" today. The battle is not over and a pullback would not be surprising. Healthcare was the leading sector today, even in an up tape. Every dog has its day. Have a good night.

3 comments:

Applesaucer said...

I've been doing some selling, on a net basis, over the last few trading days.

Applesaucer

Anonymous said...

Does the significant underperformance of gild over the past few days worry you? Could management be holding off on buybacks until the stock goes lower?

Praguer

Tsachy Mishal said...

They announced a convertible debt offering yesterday in order to buy back stock. The immediate effect of a convertible offering is that hedgers short the stock.

After that they will have over $3 billion available to buy back stock. There might be some weakness until a few days after the convert offering but the combination of the GENZ deal (once its announced) and the buyback should eventually take them much higher.