We head toward the second half of the session with a rally underway. The Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) are both up more than 2% while the Nasdaq Composite (COMP) is just shy of that mark. The Russell 2000 (RUT) is slightly weaker with a gain closer to 1%.
The graph below shows that nearly all groups are attracting money flow. The iShares Treasury Bond (TLT), streetTRACKS Gold (GLD), and Amex Gold Bugs Index (HUI) are the only exceptions.
In a commentary on Monday - Optimism Continues to Build on Freeport-McMoRan Copper & Gold, Newmont Mining, Goldcorp Inc, and Barrick Gold - I noted the continued heavy call accumulations on gold stocks and said that offered a warning sign. It seems like gold stocks have taken on more of a "safe haven" persona recently so today's weakness could just be a reaction to the market rally. Time will tell whether my concerns about optimism are justified.
As far as the leaders go, we have slight out-performance in the Regional Bank HOLDRS (RKH). Overall, it looks like we just have generalize buying going on here today.
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