Lesser bond insurer worries!

The market opened on a not-so-positive note despite some better than expected housing stats for Jan. It took the AAA rating affirmation on bond insurers to cheer the market and bring it back to significantly positive territory. With the Dow at 12,500+, I would say there's more downside than upside for the market indices at the current levels. Financials moved in pretty much the opposite direction most of the time during the last 2 weeks of market gain. A negative comment from analyst Meredith Whitney (Oppenheimer) on Citi, Goldman and other investment banks did not help it either. With 60-70% annual EPS impact estimated due to sub prime write-offs and other delinquency issues, you got to have nerves of steel to hold on. Medium term investors should remain on the sidelines; but long termers can keep chipping in at these levels.

DNA had soem good news today, with the FDA giving a go ahead on Avastin for breast cancer - i was always bullish on this one right from the beginning of the year. There's more positive news to come in the biotech and pharma sectors as the year unwinds. Big names like PFE, BMY, GENZ haven't really had a stellar ride this year so far!

GOOG dropped again - enter July or September calls at this point...it should give good gains and GOOG should see a rebound back to 520 levels sooner than later. I am happy i exited my MSFT March positions since the YHOO-MSFT saga seems to be posied for a long haul! Not too happy with my CROX or VDSI positions though - the wait is going to be longer, but these names should see some good action at least by next earnings call.

On the energy sector, i feel its time to be short on names like CHK - these are clearly in over bought terrirory!