You can question the justification for the buying, but you sure can't question the gains. We've heard these promises about European solutions before and none have come to fruition, but that didn't stop the market from celebrating again. I suspect the action has more to do with poor positioning than the actual news, but it doesn't matter, as there is no choice but to respect the bulls when they are running.
The bulls even managed a strong close after driving around most of the day. If you weren't in overnight, you didn't have much chance for profit. And to make it even more challenging, other major news events are coming that will likely produce morning gaps.
A slew of earnings reports are hitting, bringing big moves in both directions. Amazon (AMZN), Starbucks (SBUX) and Coinstar (CSTR) are misses while Facebook (FB), Deckers Outdoor (DECK) and Expedia (EXPE) are up sharply due mainly to very low expectations. Earnings season has been a mixed bag, but low expectations have helped hold the market up.
GDP numbers are coming in the morning, but we will be looking ahead to next week when the Fed issues its decision, the European Central Bank meets, and monthly jobs numbers are released.
Have a good evening. I'll see you tomorrow.