Bulls Look for Gains as Euro Fears Ease

Bulls hold the lead in our sentiment survey after the EU moved to contain the European debt crisis.
Publish date:

Updated from 5:01 a.m. EDT



) -- A $1 trillion plan by the European Union to contain the debt crisis in Europe has lifted the spirits of the bulls despite last week's dramatic stock market action in the U.S.

Under a

three-year plan

, the European Commission will make $75 billion available while countries from the 16-nation eurozone would promise backing for $570 billion. The International Monetary Fund plans to contribute an additional sum of at least half of the EU's total contribution.

Perhaps the European rescue has calmed the fears of U.S. investors who suffered through a nearly 1,000-point intraday drop in the

Dow Jones Industrial Average

last Thursday.

Investors' resolve surely has been tested. But our latest sentiment survey finds them holding onto the belief, maybe even a little more now, that the economic recovery that's taking place in the U.S. will continue because of the moves over in Europe.

As of 7:30 a.m. Monday, poll participants who were bullish tallied 1,028, or 48.1%, of the 2,136 votes cast in TheStreet.com's RealMoney Barometer Poll. Bears scored 825 votes, or 38.6% of the total, while survey-takers who were neutral racked up 283 votes, or 13.2%.

Stocks in Asia reacted to the eurozone aid package by closing with gains Monday. In Japan, the Nikkei 225 stock average gained 1.6% and the Hang Seng in Hong Kong rose 2.5%. European stocks were soaring, with shares in London higher by 5.1%. The DAX in Frankfurt rose 4.8% and the CAC in Paris soared 8.1%.

Premarket futures in the U.S. suggested stocks on Wall Street would open with big gains Monday.

The Dow ended last week with a loss of 5.7%, closing Friday down 140 points to 10,380.43, even after the Labor Department reported

nonfarm payrolls

added 290,000 jobs last month, more than estimates.


S&P 500

closed the week down 6.4%, while the tech-heavy


declined 8%.

Earnings this week are expected from the likes of


(CSCO) - Get Report


Walt Disney

(DIS) - Get Report



(TM) - Get Report


Precious metals, like last week, was seen by poll participants as the sector most likely to rise this week. Commercial banks was viewed as the sector most likely to decline.

> > Bull or Bear? Vote in Our Poll

The poll closes at 9:15 a.m.

Here's a wrap-up of our other polls:

The last week began with the biggest story in the markets still being the fraud charges against

Goldman Sachs

(GS) - Get Report

. It was the big verbal hug offered by

Warren Buffett

to Goldman Sachs CEO Lloyd Blankfein at the annual shareholder meeting of

Berkshire Hathaway

(BRK.B) - Get Report

, in particular, that dominated Monday morning headlines.

All that love between Buffett and Blankfein was, of course, raising questions as to Buffett's impartiality, given the $5 billion investment that Berkshire Hathaway has in Goldman Sachs. As the week began with a 3% gain on Monday for Goldman Sachs, after Buffett spoke up in support of the bank, we wanted the opinion of


of the Buffett-Blankfein Bounce. We asked,

Do you think Warren Buffett and Charlie Munger's words are a reason to be bullish on Goldman Sachs stock?

For the majority, Buffett's word -- leaving aside the words from his right-hand man and Berkshire Hathaway COO Charlie Munger -- is still the word of God when it comes to the subject of God's workers at Goldman Sachs.

Approximately 39% of survey-takers were as unequivocal in the belief that Buffett's words were a reason to buy shares of Goldman Sachs as Buffett was unequivocal in his support of the investment bank.

Another 29% of more Machiavellian market gamblers thought Buffett's position on Goldman Sachs was irrevocably biased. However, these voters thought that Buffett's biased words had the power to prop up Goldman Sachs share price.

>>Click here for full results and analysis of our Goldman Sachs stock poll

In the first week of May, we polled


users on their opinion of whether there's much upside left for


(F) - Get Report

stock after its impressive run over the past year.

Out of more than 2000 votes, 84.2% said they're bullish on Ford stock and believe there's more upside left for the stock. Only 12.1% of respondents said they're taking a wait-and-see approach on Ford.

Meanwhile, a mere 3.8% of voters were bearish about Ford, believing that the stock had run its course, at least for now.

Worth noting is that short interest has been growing on the stock -- evidence, of course, that there are still skeptics out there. But Sparks actually likes that, because if short interest goes down, that's yet another boost to the stock. "If the stock continues higher, these people would be forced to capitulate to cover shorts or buy into the trend and go net long," he pointed out.

>>Click here for full results and analysis of our Ford stock poll

Las Vegas Sands

(LVS) - Get Report

is expected to be the casino winner in the second-half of 2010, according to investors who respnded to a recent poll of



The company, which sees the biggest chunk of its profits come from Macau, is the clear favorite, as 62.7% said Sands will outperform the sector.

On Thursday,

Sands reported a narrower first-quarter loss

, which topped Wall Street's estimates.

During the quarter, Las Vegas Sands lost $28.9 million, or 4 cents a share, compared with a loss of $80.9 million, or 12 cents, in the year-ago period. On an adjusted basis, Sands actually earned 7 cents a share, better than the 3 cents predicted. Revenue surged 24% to $1.33 billion, in line with forecasts.

Of course, Macau has been praised as the shining star for gamers, with profit for Sands' locations in the region quadrupling in the first quarter. But Sands' new Singapore casino, which opened last month, is also expected to be a catalyst for growth going forward.

MGM Mirage

(MGM) - Get Report

came in a distant second, with just 14.8% of voters saying it would prevail in the second half. The Las Vegas-based casino operator swung to a loss in its first-quarter, but said trends in Las Vegas are improving.

>>Click here for full results and analysis of our casino stocks poll