Recipe for a Rally

Despite a dodgy close yesterday afternoon, stocks came fighting back this morning, Beyond that, they  have several factors working in their favor at the moment. Gold and Treasuries are in the red, perhaps seeing some safe haven trades unwinding a bit. The Japanese Yen, as well, is red, giving bulls in stocks hope for some more meaningful risk appetite in March. 

I quickly took myself out of some shorts this morning for contained losses, before they even hit my preset stop-loss, given the inter-market stars aligning right now for bulls. Moreover, the S&P 500 Index is back over 1950. 

We still may see some afternoon fireworks again with another suspect close. But with Goldman Sachs and financials acting well, and Goldman holding back over its 20-day moving average for the first time this year in a convincing manner, I am inclined to give bulls some room to work.