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Behind Today's Huge Rally

Stocks pop on news that investors can get a sweet deal with the public/private partnership, and Goldman Sachs pops when the WSJ says it might pay back all or part of the TARP money by selling part of its $7.5 billion stake in Chinese bank ICBC!

Three data points came together today, and each moved stocks at different times:

1) Futures were up prior to the open as the Treasury's public/private plan for helping banks sell distressed assets was perceived as a good deal for those who might choose to invest, though many potential investors made it clear they did not trust the government as a partner;

2) Stocks moved up again after 10 AM ET on better than expected existing home sales, part of several economic data points (Philly Fed, CPI, housing starts, retail sales) that have recently come in better than expected;

3) A final push up came just prior to 3 PM ET, as Reuters reported that Republican Whip John Kyl would seek at least a 1-week delay on debating bills for special taxes on AIG bonuses.

Through most of today, the S&P 500 has remained near or above 800, which is 20 percent above its March lows.

It was a broad rally, led by financials but also with great strength in home builders, energy, and industrials.

Today appears to qualify for a 90 percent upside day, where 90 percent of the volume and the point gains are on the upside. Today will be the FIFTH 90 percent updside day we have seen this month, following similar days on March 10th, 12th, 17th, and 18th.

This is the best showing we have had since the bear market began over a year and a half ago.

Most importantly, the rallies have come on HIGHER VOLUME.

Also bear in mind that we are coming up against the end of a quarter where many professionals are WAY underexposed to the market.

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