Trade Alert: Markets Rally As Fear Fades

The markets are in rally mode as fear is fading around the globe. Earnings are giving investors a fresh reason to buy the markets and the Dollar is dropping. Yesterday, International Business Machines Corp. IBM reported solid quarterly results. This morning, more great reports emerged from the likes of The Coca-Cola Company KO and Wells Fargo & Company WFC. On the slightly negative side, Bank of America Corporation BAC and Goldman Sachs Group, Inc. GS both reported earnings that did not meet Wall Street expectations. Overall, the earnings picture has been good and the markets are rejoicing. In terms of a solid risk reward play, it appears Bank of America is at a level which is now finally attractive. The negative earnings loss of $8.8 billion should be factored in by the close today, and the overly bearish sentiment on the financial stocks near a climax. When all others hate it, start loving it. That is the golden ticket. Gareth Soloway InTheMoneyStocks.com