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The Most Worrisome Aspects Of Today's Huge Rally

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hand over mouth upset worry

Despite all kinds of talk about the end of the Euro and whatnot, stocks staged a pretty serious rally today, with the S&P up nearly 3%.

But there were a few aspects underneath it all.

  • First, going back to Europe, while mostly it was bullish, there was a pretty solid jump in Portuguese yields, with the 10-year blasting to a record high 13.454%.
  • In the US, yields on the 10-year barely edged higher, ticking up to 2.00% from 1.97%, which is not emblematic of a big shift in bullishness.
  • Furthermore, investors were very discriminating. Recent tech dogs, like Groupon and LinkedIn both fell hard -- no animal spirits found here.
  • And Bank of America continues to fail to impress. Thanks to a last-minute spike, it ended higher by 1.5%, underperforming the market. It's also given up a fair amount of that after hours.

Bottom line: Good day over all, hardly indicative though of some full-throated turnabout.

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