Tuesday, January 6, 2009

An unexpected but welcome rally

Today's rally began hesitantly this morning, then gained momentum all day long. Many of my holdings enjoyed a strong ramp higher, including Finisar (common 6.7% of portfolio, calls 1.3%) and also Electronic Arts (3.9% of portfolio), which benefited from takeover rumors. Rival Activision Blizzard (calls 6.0% of portfolio) was disappointingly lower, however.

Finally, as I mentioned yesterday, LDK Solar (common 2.3% of portfolio, calls 0.1%) warned on earnings, but ended the day positive after an initial move lower at the open. It may have been a case where the stock price never reflected their rosy forecasts in the first place, and so was not punished when they couldn't live up to guidance. i.e. The disappointment was already priced in.