7/27/12 4:08 PM – Very Nice Day for Stocks

Stocks were sharply higher today, probably on continued hopes for European Central Bank actions such as buying sovereign bonds again, something thought off the table since they quit buying bonds 4 months ago and Germany had been critical of the idea.

The 2Q GDP # today was better that many had feared and the two prior quarters were revised upward so that didn’t hurt either. Economic news otherwise was mixed.

The S&P 500 gained nearly 2% on the day and finished at a higher peak than the last three peaks, something technical chart watchers should really like. Since the week was flat until this morning, the neary 2% gains was also the gain for the week.

Bonds were down but US Treasuries are amazingly high priced now. The Treasury sold 7 year bonds yesterday at less than 1%!

UNG was off nearly 2%, oil was up as was gold.

Banks did well. Citigroup was up 5% this week and JP Morgan nearly 9%. Bank of America was up 3%.