The Bacchanalians have purged in the back room and are back at the table to gorge some more. Monday morning was not looking that great within very little recovery from a huge decline. Then it took off. And this morning, Europe erupted higher, another merger deal was announces and stocks are back in gear. As Homer would say, "whoo hoo!"
Newsletter watchdog Mark Hulbert was on the tube this morning saying that his contrarian newsletter indicator is telling us the market is going up (three month time frame). He also said his top five newsletters are all positive.
Here's our take, the market has life left in it but not that much. It may get back to Dow 14,000 or it may not but the point is that there are a lot of sectors out there that have already broken. Drug stocks look very weak save for a bounce to weakly trail the market. Paper stocks look weak. Don't even think about housing and mortgage.
Banks and brokers are broken but look ripe to bounce so we'll take a look at some quickie plays there today. There are quickies everywhere (almost) so let's just get to the charts. But to borrow from another commentator on the tube this morning, we're going to be renters not buyers.Afterthought - tires were the day's top sector but that was one dead cat bounce. Volume was poor.