Rallies led by tech, biotech and banks are awfully hard to come by. But how often is it that you get multiple upgrades of the regional and national banks as well as a big push on a lagging Regeneron (REGN) and some terrific news from a semiconductor, Microchip (MCHP), that had been left for dead?
I think it's ironic that after weeks where research upgrades pretty much meant nothing, all of a sudden some bank pushes and a semi-preannouncement can get things going. These have been systematically ignored for weeks.
It's amazing to see the reactions -- given how horrible the market's been -- to the leadership from Schwab (SCHW) on an upgrade by JPMorgan (JPM) and Wells Fargo (WFC) on a Deutsche Bank (DB) push. Again, I come back to an earlier entry where I focused on how these stocks were all supposed to be rolling over. (Wells Fargo is part of TheStreet's Action Alerts PLUS portfolio.)
The pin action for Microchip -- extending to Analog Devices (ADI), Avago (AVGO), Lam (LRCX) and KLA-Tencor (KLAC) -- is heartening as they, too, have been so listless. (KLA-Tencor is part of TheStreet's Dividend Stock Advisor portfolio.)
And it is something to see the housing stocks go up despite a big increase in rates.
It's almost as if the market's been granted clemency for all its recent sins.
One thing's for certain. I don't think this rally could have occurred if the Chinese hadn't saved the day with their prop up at the close. That's worrisome because they tend to let it come in after a big move up.
That's why it's probably not a bad thing to do some selling into this move if only to be ready for when the Chinese government walks away again and we have a whole new parade of resource horribles.
Remember, even as we have already gone through a lot of the bearish phase, unless you think that we get all sorts of new upgrades and China somehow rallies on its own volition, I think I'd be a better seller than a buyer until we see if, for once, there's actual follow-through to a straight-up day.