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Turnaround Tuesday Strikes Again

Summary

It’s difficult to say what motivated bulls over the weekend to reverse Friday’s slide. Some credited Tuesday’s action to the hope China would engage in enacting some stimulus.

It’s also quite likely bulls believe the Fed will not raise rates.

It may be bulls were excited by Apple’s Wednesday’s meeting which should show off some new products. This also includes analyst’s meetings to show off other company news and projections.

Others suggested hedge funds were buying Tuesday to rebalance their beaten up portfolios.The bottom line the reasons for a rally Tuesday was a thin reed from my vantage.

It's difficult to say what motivated bulls over the weekend to revers Friday's slide. Some credited Tuesday's action to the hope China would engage in enacting some stimulus.

After all, China's export data weakened and estimates for GDP, even if you believe their reports, is declining. Goldman Sachs speculated China had spent $236 billion recently intervening in markets directly but this clearly hasn't been successful to date. China is also believed to be creating circuit breaker rules similar to U.S. stock exchange rules.


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