Since Wednesday, after a slew of encouraging economic reports, the market has been rallying higher. Miners and energy stocks have been strong. Today, Goldman Sachs issued bullish statements on the financials and they finally joined the rally: WFC +4.54%, JPM +3.04%, GS +2.56%, PRU +3.79%, PNC +2.54%. CME received an upgrade yesterday and has been shooting higher, along with ICE. CME added another $12.46 on top of yesterday's $12 gain. ICE gained +4.08% today.
The Dow was up +106.63 points; SPX added +15.46 points; Nasdaq gained +29.92 points:
XME (metals and mining) added +2.22%. OIH (oil services) rose +1.54%. SOXX (semiconductors) led the techs with a +1.85% gain. USO (oil) advanced +1.53%. XLF (financials) jumped +2.56%. FXI (Chinese ADRs) climbed +1.37%.
After 2 days of rallying, SPX has come once again to test 1220. Nasdaq closed above 2550, which was a level that it failed to penetrate last week. VIX has come down to 19.39. This market has bounced up fast, and now with financials joining in, it could break above the November highs. Tomorrow, investors will digest the latest unemployment report. From this week's economic reports, it does appear that the economy is chugging along. Given that tomorrow is Friday, we may see some profit-taking here and there. High-flying stocks such as CMG, NFLX, FFIV, and DECK all came down a bit today. However, there are stocks that are just getting started to go up again. Financials, especially, saw some encouraging strength, finally. If the market can take a breather and hold around 1220, it should be in pretty good shape.
Disclosure: no positions