Big Bounce Day, Now We Need A Follow Through

Deal-making in the industrial sector fueled a rally in U.S. stocks, helping the Dow recover from steep losses last week as Warren Buffett made a bid for PCP for the $32 billion.  Its always good to see a mega deal to start the week.

It also didn’t hurt that the other Fed head, Stanley Fischer said inflation needs to become more normalized before the fed raises rates.  They all have their own opinions and it does move markets, that’s for sure.

Oil prices reversed an early loss, jumping 2.5% to $44.96 a barrel.  It was also good to see XLE and OIH bounce very strongly off support, that helped the market too.  Materials(XLB) also did very well today, but keep in mind that energy and materials have been the absolute worst performing sectors for quite a while now, so a big bounce is not a big surprise.

Gold and gold miners poked a bit higher today, so that triggered our two new gold plays from last night.  Unfortunately NK caught a stop out.

Its important now that the S&P can continue the mojo and break out of its short term downtrend and get going to new highs.


See you in the morning.


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