Stocks Plunge, Then Rally....Again! (SPY, QQQQ, GLD, USO, TLT)

The GDP number came in less than expected this morning at 2.4% compared to consensus of 2.5%. The market initially plummeted, sending the Dow Jones Industrial Average down into the triple digits.

After the Chicago PMI numbers and University of Michigan Consumer Sentiment survey came out, however, stocks promptly reversed course and began to climb, making it all the way back to positive territory. Currently, the SPDR S&P 500 ETF (NYSE: SPY) is up 0.01% to $110.30. The PowerShares QQQ Trust ETF (NASDAQ: QQQQ) is up 0.07% to $45.73.

Today's trading activity suggests that the stock market could be stronger going forward than many observers believe. It also could be a complete head fake going into what could be an ugly August.

Gold futures have jumped $5.80 to $1,174.2. The SPDR Gold Trust ETF (NYSE: GLD) is up 0.59% to $114.96. Crude oil futures have lost 0.73% to $77.79.

Tellingly, Treasuries are having a big day, which could suggest that the bullish stock market activity is complete nonsense. The iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT) has jumped 1.09% to $100.03. The yield on the 10-Year is at 2.9286%. It is hard to imagine that the strength in stocks is real considering the plunging yields in the Treasury market.