Ahead of the open, (27-03)
Tuesday, March 27, 2012 at 07:26AM Today’s big rally of DJIA 160+,NASD +55 and SP +19 handles had all the markings of performance chasing as soon as investors caught on their heels were forced into covering and/or joining the buying melt up. Fortunately, there was no being on your heels here, even prior to flash PMI’s taking the market down 3 trading days before,"All in, if risk off mentality is picked up once again, is it really all that bad as QE’s chatter will be the market back-up plan. Also, more oppy ’if anything for dip buyers to pad books into Q end". QE related chatter from Bernanke (basically reaffirming ZIP thru ’14), but nothing too clear on further QE, a positive Draghi all played a role, but with or without the CB’s words, the market still had Q end in a dip buying / resilient marketplace.
Unfortunately, the oversized move took all of one day and there is nothing left to say in this (‘Ahead of the open’) that wasn’t said since last Thursday for the week ahead. If anything the move reaffirms the need to play catch up for some a little longer this week. It's very likely market worries of last week pushed to April.
Even the one EPS stock (GWRE) initiated last week as one that may have legs through ’12 popped nearly 15% at days highs /or 5-6pts.
