The Closing Look

Stocks were quiet on Monday as oil prices fell by over -3%. In recent sessions, oil flirted with resistance near $50/barrel and is now pulling back a bit. In M&A news, Pfizer ($PFE) said it will acquire Medivation ($MDVN) for $81.50/share, or about $14 billion in cash. Medivation has one big cancer drug that attracted Pfizer to the deal. Pfizer out bid four other firms. A few biotech stocks rallied on the news. Technically, the market continues acting well as it remains perched just below record highs.

Gary’s Thoughts: Biotech bump on another buyout. Expect more as easy money makes it easier. We are perplexed why some claim the tight action in the indices was bearish. After a move up, it is normal to consolidate. No matter what, with tight action, the next good move wins.