A happy 'close'..

This is pretty much how we described the end result for this trading action today as the tape strengthened into the close.   A combination of Eco. Data/ M &A/ earnings, Europe didn’t have a Greece drag this day,  pumping the Euro and shaping this market to give it one of the strongest days in weeks.   Of course, there's a lack of volume compared to most recent activity!!!    You have to excuse us for the sarcasm/ exclamation marks, we can't help but join the ranks to pinpoint a potential shortfall of an otherwise strong day heard all through 2009.

What's more important in this 20 pt SPX run is the broad (strong breadth ) participation of stocks, including the financials.    Oh yes, our beloved financial sector  got a lift today partly due to the Barclay's earnings and BAC reported "significant gains" in the number of modified mortgages it handles through a gov’t program.    Many of the financial stocks on our watchlist have been basing during the last couple of weeks and today's really the only day where they enjoyed some nice gains.     However, we aren't holding our breath though for a multi week rally, but a few more days are likely in the financials.   As it stands,  having the financials to hold the recent low would be a nice thing to see.    Today's strong action is once again from the sectors which we've talked since the rebound began.  The inverse USD trade came back with vengeance as speculation started that China might 'to allow' the yuan to rise.  A higher Yuan = lower USD = Commodity stocks moving higher.   In spite of the strong gains,  it‘s probably wise to lighten on some of the sub-groups.    Technology stocks (SOX >2% again ), however, are the ones that still beckon us to add to the strength heading into this earnings week (NTAP HPQ NVDA AMAT/ AMC Wednesday).   We did add some positions selectively and hope the recent strong showing in earning reports from some of the plays on our list can generate some more enthusiasm.     To us, it's about time that people recognize the excellent execution of some of the tech companies on our list.

Right now at 1094. it's hard to believe that it literally took just one day of trading to get to this point, but that’s exactly what occurred after saying a meaningful close over 1071 will bring out a more positive tone.   This means shorts cover and are reluctant to press, sellers back off and buyers become less tentative to add positions.   Like the previous attempt, there's going to be resistance from these levels to 1105, but as long as we hold this 1st day over 20 day avg. since correction began, we‘re in a good spot to at least try , especially if USD weakens.  Recall, 20 day was the key level in 2009 rally.   Still, nobody is asking this market to break out and challenge old high, but we‘d gladly be here than where we were 6-7 trading days ago.    All DJIM is wishing for at this point, is for this market to stay within a tight range and digest the recent gain.