Is Early Bounce Today Sustainable?

The stock market is getting a bounce in early trading, but I am sitting here wondering if it is sustainable? I am always leery of strong opens, as they have a tendancy to fade by the close. We shall see. Last week was pretty weak for the market, so this could be bargain hunters looking to buy the pullback.

There wasn't a whole lot of market moving news before the open. The Case-Shiller Home Price Index for March came in at 172.2, which is lower than the reading of 176.0 the previous month. But the homebuilder stocks are up so far.

Oil is falling again today, dipping below the $130 level. This is weighing on the energy stocks, but I suspect we will get some dip buyers in this area soon also.

Asian markets were higher overnight, while the Yen (and Euro) is lower this morning vs. the dollar. The 10-year yield is bouncing to 3.90%. And despite the rally, the VIX is up another 3% to 20.16.

There were more broker estimate cuts, which are weighing on those stocks. I think GS is a buy here, but I am trying to decide if I should wait for them to report earnings. Retail stocks are also getting a big boost, probably on the Barron's article on dining stocks.

Also, I want to thank everyone for all the comments on Part 1 of my "Is Oil In A Bubble?" article. Seeking Alpha ran the piece last week, and it received 106 comments! I am still working on Part 2. Given the strong response, I wanted to make sure I did my homework before posting on this subject again. Boy, did people get riled up at the notion of oil being a bubble.

long GS