Here are the six things that could ignite a rally in the stock market

Companies buy other companies all the time, but a 63% premium on an acquisition doesn’t happen every day.

IBM IBM, -4.35% unveiled its largest software acquisition ever by offering $190 a share for Red Hat RHT, +45.68% I need to start with a full disclosure: The Arora Report gave a signal to buy Red Hat at $43.14 with a call that it was likely to be bought out, most probably by IBM. A 63% premium on a deal is striking. Of course, a 340% gain on our position is putting me in a buying sentiment.

The anecdotal evidence is that the positive sentiment is contagious on this large premium.

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