Although the market was mostly in the red at the close, there was a slow and steady recovery all day following the weaker-than-expected ADP jobs report. The buyers dismissed it as meaningless, and shrugged off weakness in Spain and various European banks.
Good earnings helped the bullish case, but mostly it looked like the action was saying, "They can't take them down so we might as well buy it." Skepticism and doubt are high, but the market is cooperating and that is forcing some buys -- just in case the bulls are right.
We have weekly unemployment claims Thursday morning and the monthly jobs news on Friday. That will set the tone tomorrow, but the good news is that the ADP report will help lower expectations, even though the bulls were quick to dismiss it.
The biggest positive is that there are some decent pockets of momentum in Lululemon (LULU), Papa John's (PZZA), Under Armour (UA) and Nike (NKE), even though key leaders like Apple (AAPL) and Caterpillar (CAT) are struggling. When stock picking works it's tough to be too negative, no matter what the economic headlines say.
Have a good evening. I'll see you tomorrow.
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