I'm Not Buying Tuesday's 'Hopium' Rally

Bret JensenInvesting Group LeaderFollow5ShareSavePlay(9min)Comments(2)SummaryEquities surged to close a weak first quarter on Tuesday, with the NASDAQ rallying over 3.8% for its best day since May of last year.Market sentiment improved on hopes for a Middle East ceasefire, fueling broad-based risk-on momentum.The rally moved the Dow and NASDAQ out of official correction territory and pushed oil prices down on hopes for the end of hostilities.However, for reasons highlighted below, I view Tuesday's market action as a 'hopium' rally, and I remain cautious on equities going forward.Looking for a helping hand in the market? Members of The Biotech Forum get exclusive ideas and guidance to navigate any climate. Learn More » artplus/iStock via Getty Images Equities staged a rip-your-face-off rally on Tuesday to end a dismal first quarter for investors on a high note. The NASDAQ led the advance with better than a 3.8% rise, the index's best daily performance since May of last year. The small-cap Russell 2000This article was written byBret Jensen57.23K FollowersFollowBret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.