You can’t say we didn’t warn you that traders were tired of selling. Selling was exhausted by Monday as futures were down then turned positive by mid-day Monday. The roller coaster market tied to European chit chat is too amazing. Today the focus was on what Austria would do (they have not decided). But although everyone knows that sovereign debt issues will not go away money has to keep moving into something and today it is US stocks. With 10 Year Treasuries at 2% stocks look good. Despite the reality of slow growth ahead, the US equity market is playable albeit with considerable volatility.
As of 3:15 EDT the market is up over 2% with NASDAQ being the strongest. Chips are the big mover today with the SMH up 3%.
Among the winners in our biotech coverage are Biogen (BIIB $97.81) up 3.5%, GenProbe ($60.27) up 4%, Gilead ($39.40) up 3%, and Illumina (ILMN $52) up 3.8%.
In the ETF world the strong trading vehicles are QQQ and IBB both up 2% +today.Over 5 days the Q’s are up 5% and the IBB is up 4%.