Stocks Rise; Gold plummets

While the major indices gaped higher by close to 2%, volume was light showing little conviction in the move. As usual, Europe was the story today. The Dollar injection by the ECB into European banks got us going this morning and after a brief dip around 11AM we never looked back, closing right near the highs for the session. I did a little shopping today in Arcos Dorados Holding (ARCO) as it was down more than 2% most of the day. I also picked up some Apple (AAPL) as it's sure to see $400 in the next week. I bought some Proshares Ultrashort Gold ETF (GLL) with gold falling almost 2% today. Gold had been down more but recovered late in the day. Gold should see $1600 before the October expiration. Free Market Capitalist Portfolio fave Alexion Pharma (ALXN) surged over 6% today on analysts upgrade. This is one of my favorite year-end plays beacuse with approval of off-label use of their drug Soliris expected to come as early next quarter, this stock could see $90 by December. Tomorrow could be violent as we have a quadruple witching situation in the options market and given our close above 1200, the move could be to the upside. I'm in about 25% cash.

This is not a recommendation to buy or sell any securities. DAK was long ALXN, ARCO, AAPL, and GLL at time of publication but positions can change at anytime.