It was a victory for the bulls after a very weak open, but the quick spikes and random last-hour moves don't make for easy trading. The action today mostly felt like shorts being run over by new money coming in on the first day of the quarter. We had bounces in energy, steel and commodity-related names, but retail and regional banks also did well.
We have a lot of news coming up in the next couple days and, without better consolidation, it is hard to be trusting of these market spikes. We have weekly unemployment claims tomorrow, the jobs report on Friday, the G-20 meeting and, probably the most important, the FASB meeting on mark-to-market accounting rules tomorrow.
I expect some nutty action on the FASB decision no matter what it might be. It is sort of like a Fed interest rate decision day. We have a general idea of what to expect but there can be surprises and there will be strong emotions.
There are obviously some buyers under the market today but I'm looking for a rollercoaster ride on the news over the next couple days. It should be a good time for the ultra short-term traders, but they better be ready to move.
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