Market Bounces In Early Trading

The market rallied back a bit yesterday afternoon, erasing a portion of the earlier declines. Volume decreased on the day, which is what you want to see on declining days. This morning, the market is getting more of a bounce on an easing of credit crunch fears.

There were some solid earnings reports from Emerson (EMR) and Valero Energy (VLO). The former saw continued strength in the global economy.

Energy stocks are up the most this morning, as oil is spiking above $96. I am starting to hear some calls for a top in oil, notably from one of the tanker executives who appeared on CNBC the other day. But it sure feels like it wants to hit $100 first.

Asian markets were mostly higher overnight, bouncing back from the drubbing they experienced on Sunday. And bond yields are slightly higher as well. I want to see the yield on the 10-year lift a bit, if only to signal that any anticipated slowdown in economic growth won't be that bad.

I added more long exposure yesterday, adding to positions in GS, WFR, and some ETFs. BIDU is currently reversing lower on the day, which could weigh on the Nasdaq in the short-term. But I believe we are getting closer to the start of a final year-end rally.

long EMR, GS, WFR