The broad-based market rally today was not a big surprise considering the oversold levels of markets around the globe. The hint of good news this weekend out of Europe was enough to send the bears to the sell counter and money on the sidelines rushed into stocks at bargain levels.
The big question is whether this is simply a short-term rally based on the European news and "so far, so good" holiday sales reports OR it is a sustainable rally? I am leaning towards a short to intermediate-term rally in stocks before more negative news out of Europe derails any long-term uptrend.
A push by the bulls in the final 10 minutes helped the market recover from a late-day swoon and close hear the highs of the session. The action the next few days will be key to the direction of the market over the remainder of the year. A failure to follow-through after today's rally will be viewed in a very negative manner and it will call for a move to raise cash and/or initiate new "hedging" positions.
Stay tuned this week!
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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