Market Wrapup - March 18th

Another “up” day, with the S&P leading the rally, closing at 793. Surprisingly, my views toward the market haven’t changed. We took out 777 during the first two days of trading, broke above 800 today, causing the shorts to run for cover. I remain bearish, particularly on commercial real estate, however, I think it’s possible that we could see another 60 points on the S&P. The key is to get selective and don’t get greedy.

I rarely beat down the table, but I am telling you, LOOK AT HEALTHCARE. Last Friday, the calls in HUM were on fire and now today CI call options were on fire! CI March call options (keep in mind they expire Friday) took off, with the $15 strike up 158%, $17.50 strike up 200%, and $20 strike up 100%. I pointed this out this morning; however, they are taking off faster than I thought. CI up 7.25%, HUM up 5.36%, and UNH 1.95%. UNH is still very cheap at these levels and there is some serious noise in HUM and now today, CI. HUM and UNH have better balance sheets than AET or CI. Dennis asked a good question in the comment section, regarding the Healthcare Value List. Those names consist of Pharma, Healthcare, Biotech, and other various HC. These are ranked on a valuation metric that I use, so I don’t list them by my preference. My goal is to provide a list and let you find which ones you like, but keep in mind, biotech is very risky and I would buy a basket when playing, or by the XBI (Biotech ETF). Ok, I will leave Healthcare alone, but at these valuations, these can be trades or even long-term plays, just don’t go all in at once.

As for my account, I ended up a few percent, with big gains in TTWO, VMW, and DRYS; however, my WRI short fell rather hard. I did not cover and plan on keeping it as a hedge. As for financials, I have no position and I rather not be long or short. As for the FAS, I bought in the mid $2’s and sold way to early around $4, now its near $7. FAZ has fallen from $100 on March 6 to $26 now. For all I know, FAS and FAZ might touch each other soon, haha. Financials are beyond crazy and I rather not play.

I off for the night, I need to fill out my NCAA basketball bracket .