Tuesday Outlook: The Light Volume Rally Has Legs

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 |  Includes: IEF, IWM, IYR, IYT, MDY, QQQ, RSP, SEA, SPY, TECL, TLT, UPRO, VTI, XLB, XLF, XLI, XLU, XLY
by: David Fry







THE LIGHT VOLUME RALLY HAS LEGS

The low volume rally continues with news being spun six ways from Sunday. Today it was carryover optimism from last week’s winners Google (NASDAQ:GOOG) and JPM (NYSE:JPM) and today’s rationale seemed a stretch: “Gannett revenues down; results top expectations”, “Eaton Corp sees improvement in key markets” and “Hasbro rose on cost cuts”. Oh yeah baby!

In the meantime, we await Apple (NASDAQ:AAPL) and Texas Instrument (NASDAQ:TXN) earnings. Further investors are oddly joyful in high oil and commodity prices as they look at recovery prospects more than increased costs. Fed Chairman Bernanke seemed to give a green light to further dollar declines when he suggested China should spend more and Americans spend less. Did I get that right?

As stated, volume was on the light side and breadth was as positive as you’d expect.


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Below are some After Hours quotes.


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