Another Tricky Week Of Trading

The buy in front of Ben trade is working like magic once again.

Today's gains marked the best percentage gains for the Dow and S&P this month providing hope that the market has bottomed and the good times have returned. Another day like this, and we'll be back to overbought conditions right about the time that Bernanke opens his mouth. If they can sustain this momentum for another day, S&P 1400 will be "THE" level to keep on the radar.

Sure, I know everyone is giving credit to the bond insurers, but I personally think that's a farce. The go to trade for awhile now has been to buy ahead of Ben's speech and sell after. The fact that we had some M&A activity and strength in the homebuilders following this morning's report on home sales also helped quite a bit in addition to the market's inability just to break down. Combine that with the fact that the herd is restless now we're coming at the end of another month and we shouldn't be too shocked to see this kind of spike.

For the day, buyers could be found in the basic materials, chemicals, oil & gas, real-estate, retail, financials, homebuilding, biotech, and even some areas of tech while education and training services continue to suck wind. Like clockwork, we also managed to hit yet another new 52-week high in the PowerShares DB Agriculture Fund ETF (DBA). Wow!

I'm inclined to believe this is going to be yet another tricky week of trading, but what else is new? By now, we all should be use to it. See you tomorrow!