Much was made of Alcoa's earnings result as a cause of today's bullishness, but the stock finished basically flat on the day. However, data from China indicates strong demand for metals (JJC, DBB) which pushed base metals prices and the materials sector (XLB) higher. Bulls extrapolated the combination of the two reports as bullish overall and drove the S&P 500 Index above the October 2011 high (1285.09) closing at 1292.07.
Financials (XLF) and banks, especially Regional Banks (KRE) continued their recent rallies in anticipation of good earnings results soon. Not to be left out Technology (XLK, QQQ) also ended the day higher led by Cirrus Logic (CRUS) boosted by Semi's (SOXX) and biotechnology (XBI, IBB).
We still have the eurozone to worry about but Angie and Nick are meeting again so something must come of it besides schnitzel and escargot. The outcome of Italy's largest bank's rights offering by Unicredit reversed course from its dismal offering and rallied 6%. This little display of bottom picking came after the price fell 47%. I don't think the U.S. can decouple from the eurozone for long but for now it's an Alfred E. Newman "What, me worry?" deal.Gold rallied sharply with metals even as the dollar was flat against the euro. Oil prices (USO) jumped and bonds sold-off. Perhaps ignored by bullish enthusiasm is volume remains abysmally low while breadth Tuesday was again quite positive. Follow our pithy comments on twitter and join the banter with me facebook. SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details QQQ - PowerShares Capital Management LLC is passionate about our goal of delivering the highest quality investment management available through one of the more benefit-rich investment vehicles ever created, the exchange-traded fund.PowerShares QQQ¿, formerly known as "QQQ" or the "NASDAQ- 100 Index Tracking Stock®", is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually.
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