Classic Bull Action

I'm still surprised at how well the market fought back yesterday with the Dow Jones Industrial Average up at new record levels and the Nasdaq barely down on the day after having been down a full 1% to kick it off.

That's more classic bullish action, even as everyone now almost seems to be wishing we could have some sort of a washout to scare the bulls.

And then we walk in this morning to find that the M&A/private-equity frenzy is even carrying over to telecom-equipment vendors, with Redback (RBAK - commentary - Cramer's Take) being snapped up by Ericsson (ERIC - commentary - Cramer's Take) for a few billion bucks. We've seen deals happen in semiconductors, tobacco, gambling joints, major telco-service providers and all kinds of other sectors, and now the trend has spread to telecom equipment.

It's a bull market until it isn't. Apparently, this market is still in bull mode.

I'm still looking to buy some index put hedges for my sheets, but I also am excited about getting through to year-end and about putting more money to work in the new year. Price and time will guide, as usual.

More after the open.

At the time of publication, the firm in which Willard is a partner had no positions in any of the stocks mentioned in this column, although positions can change at any time and without notice.

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Cody Willard is the manager of CL Willard Capital Management, LLC. He is a regular guest on Fox News, CNBC and other networks, and he writes a monthly column for the Financial Times. He is also an adjunct professor at Seton Hall University and the author of TheCodyReport.net, a monthly stock market newsletter. Willard appreciates your feedback -- click here to send him an email.