Markets Close MUCH Higher....

Dow +429.92
Nas +124.83
S&P +53.07

Nice closing rally...kind of erases 2/3rds of yesterdays losses.  Tomorrow is an important day.  We need a follow-up rally!!!

Traders sell into Fed news.....

Immediately following the Fed announcement, the Dow was up 180 points, 30 minutes later the Dow is down 108.

It will be an interesting close.  We have afternoon margin calls due at 3 pm....after that, hopefully we will gain some footing.

2:15 pm: Fed Leaves Rates Unchanged....

In an unprecedented move they are saying that they are not intending on raising rates until mid 2013.  Kind of an extreme statement...ultimately good for stocks, but may get a bad reception in the near term.

Expect Margin Calls.....

Market will undoubtedly face some selling pressure between 11 am and Noon today....

Keep an Eye on Gold and Silver....

Silver started selling off last Thursday...a fall in gold would be a key sign of a shift of money looking for bargains in stocks....

Analyst Upgrades and Downgrades....

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.


AECOM Technology Corp. (NYSE: ACM) Reiterated Buy with $33 target at Argus.
American International Group, Inc. (NYSE: AIG) Raised to Market Perform at KBW.
Berkshire Hathaway Inc. (NYSE: BRK-A) Raised to Overweight at Barclays.
Boston Scientific (NYSE: BSX) Raised to Outperform as Bull of the Day at Zacks.
CBS Corp. (NYSE: CBS) Raised to Buy with $31 target at Argus.
First Solar Inc. (NASDAQ: FSLR) Maintained Buy but cut target to $140 at Argus.
Humana Inc. (NYSE: HUM) Raised to Buy at Goldman Sachs.
McDonald’s Corporation (NYSE: MCD) Raised to Conviction Buy List at Goldman Sachs.
Merck & Co. Inc. (NYSE: MRK) Raised to Buy at Jefferies.
Pfizer Inc. (NYSE: PFE) Raised to Buy at Goldman Sachs.
PPG Industries, Inc. (NYSE: PPG) Reiterated Buy as Value at Zacks.
StanCorp Financial Group (NYSE: SFG) Cut to Underperform as Bear of the Day at Zacks.
Tyco International Ltd. (NYSE: TYC) Raised to Buy at Goldman Sachs.
Wells Fargo & Company (NYSE: WFC) Raised to Outperform at FBR.
Wynn Resorts Ltd. (NASDAQ: WYNN) Raised to Hold at Citigroup

All Eyes on the Fed....

The FOMC is due to meet today amid calls for the Fed to take action over slowing growth, especially after yesterday's stock plunge. However, with interest rates at zero to 0.25% for nearly three years and $2.3T of bond buying not spurring growth, there doesn't appear to be a huge amount the Fed can do. One option would be to replace shorter-term securities with longer maturities to reduce rates on longer-term debt. And if the Fed is considering QE3, it's not expected to announce it today.

Bring Back the Uptick Rule!!!!

With the Uptick Rule in place, shorting the market was much more difficult.  The SEC completely dropped the ball by allowing these ETF companies talk them into getting rid of the rule.  The result...a casino with no protection on the downside.

Medicis cuts outlook.....

Medicis Pharmaceutical Corp. (MRX). The company posted second-quarter profit in line with estimates and cut its full-year outlook. Medicis cut full-year earnings to $2.25-$2.56 a share from earlier view of $2.45-$2.60 a share. April-June net income fell to $28.8 million, or 43 cents a share, from $36.5 million, or 56 cents a share, a year ago.

Carrizo Oil and Gas Profit Doubles....

Carrizo Oil & Gas Inc (CRZO). The natural gas-focused energy company’s second-quarter profit rose more than fourfold helped by higher production and increase in oil prices, and said it expects 2011 production to be at par or above its prior view. Net income rose to $7.7 million, or 20 cents a share, from $1.8 million, or 5 cents a share, a year ago.

Fossil Q2 profit beats Street, but Guides Lower...

The company which sells its namesake brand as well as Michael Kors and Armani quarterly profit beat market estimates on increased sales of its watches and leather products, but the watchmaker forecast a third-quarter profit below expectations.

Fossil trading at $78 premarket down from a close of $93.  Fossil was IBD's number 2 rated stock.

Dish Network Q2 profit misses on subscriber losses

The second-largest U.S. satellite TV provider’s quarterly profit fell short of market estimates as the satellite-TV provider lost subscribers, hurt by increased competition.

Direct TV and Verizon's FIOS taking a toll on DISH.....

Futures have reversed overnight....

At 11 pm last night, the Dow Futures were down 280 points....as I write this Dow Futures are up 108 points....

Market Breadth from Yesterday....

This is about as ugly as it gets....Check out the New Lows on the NYSE (1,306).  I have been keeping track of Market Stats for 15 years, and have never seen anything close to that.  Selling volume suggests that yesterday was a complete panic selloff.