Stocks retreated across the board during Thursday's session after Federal Reserve Chairman Alan Greenspan gave investors a "reality check" in his testimony before the House Financial Services Committee. In short, the Fed chief said the economy continues to expand at a respectable pace, and that inflation, while not an immediate threat, remains something policy-makers must guard against.
The outlook was more candid than stock buyers expected and the result was widespread profit-taking on the heels of a week-long rally. Despite the market's bearish activity, the OW portfolio fared reasonably well and all of the positions are expected to expire profitably at the end of trading on Friday. This group includes the previously closed plays in Global Crossing (NASDAQ:GLBC) and Myriad Genetics (NASDAQ:MYGN), which became "early-exit" candidates in the interest of prudent money management.