Urge To Merge

$17 billion dollars in takeovers was just enough to squeeze the bears as the urge to merge continues. So far this year, $508 billion in U.S. deals have been announced which is +31% more than at this same time last year. Wow!

No doubt the bulls got a good start on the week with the expectation that Bernanke will put lipstick on this pig. I'll be much more convinced if they can blow through overhead resistance in the short-term and do so with so much firepower that even the most aggressive bear would feel like running home to Momma. I seriously doubt we'll see that, but if you're long and strong, that's the scenario you want to see to confirm today's rebound. Whether you think that is a high-percentage trade or not should influence how you're positioned. Trade and scale accordingly. Have a great evening!