Exposing Ideas to the Envelope of Serendipity

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Tuesday, June 21, 2011

The Bulls are Back

The much-anticipated and stubbornly elusive rally out of deeply sold technicals finally arrived with a bang this morning, and on a "Turnaround Tuesday," no less. Stocks gapped up strongly out of the gate and never looked back all morning with a broad-based rally fueling big price gains in stocks, squeezing shorts, and summoning technical buyers targeting the end of the correction and a move off 200-day moving averages. The morning's action has vastly improved chart patterns of the major indices, even if some retracement is seen near-term, which is likely. We still need to see how and where things close and watch for decisive follow-through action in the days ahead, but a convergence of many factors -- an oversold market, earnings season in the wings, negative investor sentiment, and potential market catalysts with Greece and the FOMC dead ahead argue for the beginning of a new leg up getting underway.

We have lift-off.

Trade well.

-- Brinkley
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