The market is trading higher in early trading on the heels of the news that US forces killed terrorist leader Osama bin Laden. Last night, when the news came out and the President made his statement, the Dow futures spiked up over 100 pts. But today they are up about 50 pts so far.
Corporate newsflow is relatively light. Cephalong (CEPH) announced it will be acquired by Teva Pharma (TEVA) for $81.50. That bid tops the one from Valeant Pharma (VRX), whose stock is trading lower this morning as a result.
Commodities were also lower overnight, but are mostly higher this morning. Gold prices are hovering near $1558, but silver prices are down from last week's spike. Oil prices were also lower but have since climbed back above $114.
The 10-year yield is still flat around 3.29%; and the VIX is higher today by 3.6% to 15.30.
Trading comment: After stringing together 2 solid weeks without much of any selling, the market is once again nearing overbought territory. That said, last week's breakout of the major indexes looks solid, and I think the markets will continue to stair-step into higher ground. Participation is broadening as well. Last week we added Digital Realty (DLR), a REIT that focuses on corporate data centers and is an ancillary play on the rise of cloud computing. I also still think AAPL is consolidating and should breakout soon now that the Nasdaq rebalancing is behind us.
long AAPL, DLR, VRX
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