The Tide is High, Bulls Holding On

9:10am (EST)

The bulls kept their momentum for the week to win their third straight session as the bears retreated to higher ground on Wednesday. After a choppy start, a flood of buy orders stormed Wall Street which helped push the major averages well into positive territory and past key support levels.

Some of the bloom came off the rose in the final hour of trading, but the bulls still scored solid gains on heavy short covering. We mentioned yesterday that global news would dominate the headlines for a few weeks but money seems to be moving back into stocks after improved sentiment on the financial stability of Greece.

It’s been amazing to watch the day-to-day sentiment concerning the debate on whether Greece will default or not. Yesterday, it was France and Germany that lead the call to ensure Greece will carry out all proposals to meet their budget plans. We aren’t sure what the final outcome will be on Greece but it is apparent the eurozone doesn’t want a collapse which would certainly cause a domino effect.

Elsewhere, two of France’s banks had their ratings downgraded by guess who? Yeap, our old pal Moody’s (MCO, $31.65, up $1.18) is back after feeling left out and tried to ruin the bulls’ party. Rumors had already been floating for weeks that this was coming so it hardly came as a surprise although it did weigh on futures Tuesday night.

Didn’t matter. The bulls still had a field day.

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The Tide is High, Bulls Holding On

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