Macro Outlook

Merck & Co. Inc. (MRK:NYSE) guidance is guiding the whole pharma sector into a dark hole, including WaveStrength Options Weekly short candidate Pfizer Inc. (PFE: NYSE). 

Funny that it's working out that way: Merck is still trying to get around the unfortunate "undue mortality events" surrounding Vioxx, which is exactly what Pfizer discovered with its new cholesterol drug. 

 

Needless to say, WOW readers' PFE puts are on the move too, and may actually beat Monday's max gain of 221%. 

More tonight... 

Market Trends

Now there's no doubt that Yahoo! Inc. (YHOO:NASDAQ) has officially declared “war” on its biggest competition Google Inc. (GOOG:NASDAQ).

YHOO is shuffling management to become more efficient at its business. The company is reorganizing into three different units: one focused on Yahoo!'s audience, one focused on advertisers, and one focused on technological research and development. 

Daniel Rosensweig, COO since 2003, has “departed” from the company, and Susan Decker, CFO, will head the advertising unit. 

Investors are little fazed this morning by the news: YHOO is trading down $0.21 below its 10-day Moving Average, in the flat trend it has called home since early November. 

Trading Tactics 

This morning, bankrate.com is reporting that the 30-year fixed, the 15-year fixed, the 5/1 ARM, the 30-year fixed jumbo, and even the 5/1 jumbo ARM are all falling.

This broad-based rate drop is once again providing a lift to the housing sector, as reduced rates spark new buying activity. That's always positive, especially for the basket of homebuilding stocks Adam and I are holding in our WaveStrength Options Weekly service. 

As I write, our streetTRACKS SPDR Homebuilders (XHB) calls are on the verge of breaking to a new high - and our WOW readers are positioned to profit off each and every up-tick! 

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