The market rallied on news out of Massachusetts over the weekend that a republican challenger was about to pull an upset of the century. Those who shorted the close on Friday were racing to close those positions.
The short squeeze on healthcare stocks pushed WellPoint to gap open, which of course filled our opening entry at nearly the high for the day. I am going to have to start putting gap insurance into every play description to keep from getting trapped like this in the future. I still believe WellPoint is going higher so I am not too concerned tonight.
Deutsche Bank gained a buck and did it gracefully rather than two bucks forward and one buck back. Wednesday is bank earnings day and whatever BAC, WFC, USB, MS, STT and others report will control our fate. DB does not report until Feb 4th.
Baidu (BIDU) gapped down at the open to below our stop at $450 so that play was never entered. The gap came after news broke that the second officer in as many weeks quit suddenly. Now that the bloom is off the rose we need to give it a couple days before trying another entry.
Scott Brown won in Massachusetts and the futures are down -3 points and the dollar is up sharply on thoughts that maybe the government will not be able to pass as many deficit increasing deals as previously thought. Wednesday should be an interesting day.