- RECIPE FOR RALLY: RETAIL
The retail numbers were just “good enough” to spark this rally, Jeff Macke says. Investors were too negative leading into the number today and they got a nice surprise.
- RECIPE FOR RALLY: METAL MERGERS
Rio Tinto’s (RTB) $38 billion cash offer for Alcan (AL) is 33% higher than Alcoa’s (AA) bid. Alcoa now has a target on it, Eric Bolling says. Consolidation in the metals is probably far from over.
- RECIPE FOR RALLY: BANKS
The financials stabilized today, Guy Adami says. And the credit card companies are ripping, too. Mastercard (MA) was up 5%, American Express (AXP) up 5%. “I still love the credit cards,” Guy says.
- RECIPE FOR RALLY: TECHNOLOGY BREAKOUT
Chipmakers, computers and servers all made a move today. They’ve been underowned for some time, Pete Najarian says. He thinks this is only the beginning for tech and they will continue to go higher. Once earnings season starts, he thinks you can expect tech as a whole to see a lot of upside. The back half of the year is typically stronger for tech. Jeff Macke is especially bullish on the chipmakers – Intel (INTC) in particular. “There is more room for tech to run,” Jeff says.
- RECIPE FOR RALLY: SHORT SQUEEZE
There was the largest short position in S&P futures in three years today – over $45 billion in buying power – and a midday squeeze sent this market off like a rocket. Pete thinks this kind of volatility should be expected for the foreseeable future as this is a news-driven market. When the news is bad, the market is terrible – but when the news is great, like it was today, the market is terrific.