Nothing like a Fed Chairman mentioning the word stimulus to boost the market. Fed Chief Ben Bernanke gave a speech yesterday morning saying the need for additional stimulus remains. Investors read that as an indication that QE3 was around the corner and reacted with a buying frenzy. The Dow ended the day up 161 points to close at 13,242. The Nasdaq tacked on 55 points and the S&P 500 added 19 points.
The rally on the street was set against backdrop of another economic data point miss. Pending home sales, expecting a rise, declined from January to February. The housing market at this point is just refusing to recover. Couple that with an anemic labor market and the recovery is halting at best, a mirage at worst.
No matter what the broader market does, you can always count on penny stocks to give you the volatility. Today was no different as several old pumps continued to churn volume. Some new faces emerged in the pack giving day traders something to feast on. [Read more...]