Dow Soars Nearly 245 Points

Market Snapshot

The Bulls Charge and the Market Soars

Click on the charts for easier viewing

Chart View

S&P 1500 Breaks Out to the Upside

Market Direction Model

Upside Impulse Indicators Fired today
The Whole Bottom Row is Painted Blue (Very Bullish)

Good news out of Europe triggers a huge global rally. 

According to Draghi, the ECB now stands ready to buy an unlimited amount of bonds from troubled Euro Zone nations, i.e., Spain. Spanish bond yield dropped to the 6% level and Spanish stocks rise over 5% on the news.

News of bond buying program set off today's big rally in the US.

While not 100% invested, the GWM Model Portfolios were positioned quite well to benefit from today's big move. We were in the right sectors, i.e., financials, large tech and homebuilder.

The Jobs report is out tomorrow morning. Normally this is a market moving report, but it really may not matter if it is good or bad.  A bad report would suggest that QE3 would be coming sooner rather than later and a good report would confirm improvement in the economy. Either way investors win.

The Chart View of the S&P 1500 above shows that volatility had contracted to a very low level. When the Bollinger Bands get closer together volatility is contracting. We call this a volatility squeeze. We know that volatility will expand before long, causing the Bollinger Bands to spread out again. We don't know which direction the market will move in advance, but we know it will make a pretty good move. The breakout was to the upside; a bullish sign for sure. This is our signal to add to our equity positions.

The Market Snapshot looks overbought right now, but I think that is a result of the volatility squeeze reversing so abruptly. I'll pose that question to the HGS Investors forum.

Precious Metals

Gold

Gold closes over $1,700 today.

In anticipation of a new round quantitative easing worldwide, precious metal have broken out once again. GWM Model Portfolios hold both gold and silver.

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