Turnaround Tuesday

Turnaround Tuesday lived up to its reputation following a large drop in oil prices and promises that the Fed will extend its emergency loan program to Wall Street's largest investment banks. As expected, negative reports on both consumer credit & pending home sales didn't have much of an impact.

The most beaten-down areas were the leaders today (see big gains in the ProShares Ultra Real Estate ETF (URE), ProShares Ultra Financials ETF (UYG), & iShares Dow Jones US Home Construction Index Fund ETF (ITB)) which is typical behavior following the kind of performance we've seen. The pros are likely trying to tip toe back into some positions in these groups (though likely with tight stops) in oversold conditions. With earnings expectations dramatically reduced, the current environment is such that any positive news will likely be well received. The question is whether we'll get any and how investors will react in turn to what good news comes our way.