All it took was a little blurb from The Wall Street Journal that the Fed is considering some limited form of quantitative easing and the dollar fell, commodities ticked higher and the market spiked. We had been just drifting around and not gaining any further traction until that little news item hit.
So far we are holding on to the gains but the Apple (AAPL) announcement of iPad3 is coming up and traders are wondering whether this well-anticipated event might produce a "sell the news" response.
Overall we continue to see some pretty routine oversold bounce action. Oil and metals are now leading following the QE talk but breadth is solid at around 3-to-1 positive.
Watching this action makes me thing about all the "V"-shaped bounces we have seen the past couple years. They almost always start out exactly like we are seeing today, but they keep on drifting higher on low volume and gain additional fuel as the nonbelieving bears are squeezed. Technically it just isn't reasonable to expect the market to go straight back up after a day of selling like we had Tuesday, but it has happened more times than I can count in the past two years.
I have a few trades going, such as Global Cash Access (GCA) and InvenSense (INVN), but overall I just don't have much on my radar right now.
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