Tuesday, August 9, 2011 4:52 PM – Nice Bounce in Stocks

Stocks were up 4% – 7% today, depending on the index. Gold was also higher, as were bonds.

Often, but not always such rallies last 1-3 days and then come back down to “test” the previous low.

We bought a replacement for some of what was recently sold this morning when the market was not up so much. Of course we had only sold a portion of what we had allocated to stocks.

The market was actually down for the day until about 2:40 when buyers came on in force. Volume was extremely high today, which is a good sign.