With stocks down sharply throughout the day a powerful last minute short squeeze was launched after an FT story suggested EU ministers were "looking" at new plans. These plans are "under discussion" but there is "no formal decision". This was enough for an oversold market to rally sharply. One major condition which was much heralded throughout the day was major indexes were in bear market territory. Bulls are desperate to this and would likely latch on to any news that can generate a much needed "stick save".
Apple (AAPL) launched its next iPhone model which was greeted with a yawn. I'm sure it's a great product but hard pressed consumers may not have the money for another gadget when what they have now will do. In fact, after the announcement the stock slid over 5% but it rallied with HFT buy programs (bulls love them now) to close the day only slightly lower.
Everything reversed course from AMR (American Airlines) to Financials (XLF), Industrials (XLI), Emerging Markets (EEM), Europe (IEV), Bonds (TLT) and Commodities (DJP)For now, color this a Turnaround Tuesday on steroids. The bottom line is will European players must make a real deal that sticks. None has thus far and talk is cheap. After the close Moody's downgraded Italy's debt three notches to A2 which isn't sitting well with after hours trading. Further Moody's is preparing to downgrade seven Hungarian banks. Maybe these downgrades will stimulate a resolution from the Europeans. The FT editors will have to get busy. The CME is getting busy curiously lowering futures contracts on stock indexes by 23%--now that's the bullish bias at work. Volume was quite high as the market rebounded from bear market levels. Breadth per the WSJ was positive. You can follow our pithy comments on twitter and join the conversation with me on facebook. Continue to U.S. Sector, Stocks & Bond ETFs
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV