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Market Preview: Riding the Seesaw

Tickers in this article: SPY EBAY ^DJI QCOM ^GSPC ^IXIC BRK.B INTC AAPL CREE

Updated from 6:45 p.m. ET to include additional information about Berkshire Hathaway, Cree and Intel .

NEW YORK ( TheStreet) -- Things look a whole lot better at the top of the seesaw than they do at the bottom.

The great rally of 2012 has mostly been a slow-and-steady affair with triple-digit swings in the Dow Jones Industrial Average few and far between. Tuesday's stellar rally was broad and convincing but it also feels like Wall Street may have a "too much, too soon" situation on its hands with volatility slowing creeping back into the mix.

Last week was the worst one for equities all year, with even Apple(AAPL) taking a breather, and there's an argument to be made that a bit of churning at those levels would've done the market's internals some good. Instead, the Dow roared to its best day in more than a month on Tuesday.

All of a sudden, the blue-chip index is comfortably above 13,000 again, the S&P 500 is sitting 20 points above its 50-day moving average, and the Nasdaq has reclaimed 3000 in high style. First-quarter earnings season has started out well, but not quite that well.

It makes for a bit of a schizophrenic feel from one day to the next, and Peter Tuz, a portfolio manager at Chase Investment Counsel, expects these conditions to persist for a while.

"I think it's a daily seesaw between Europe and earnings," says Tuz. "On the one hand, you have economic issues in Europe coming to the forefront and that tends to weigh down the market; earnings, by and large, have been beating diminished expectations ... I think it's going to go back and forth for the rest of the year. I don't think the worries in Europe are over by any means. You saw Greece, you're starting to see real problems in Spain. There will be solutions in Spain and then there will be problems in another country."

Tuz also weighed in on Apple, a stock that he believes investors should look to take advantage of any weakness in. Apple shares broke a five-day losing streak on Tuesday, surging more than 5% in a move that The Wall Street Journal said was the biggest one-day dollar advance in the company's history.

"It's more like a balloon than a bubble," says Tuz of Apple. "They opened the bottom and let a little air out ... There are a lot of people who don't have iPhones and Mac laptops and they're taking market share."

As for Wednesday's scheduled news, eBay(EBAY) is reporting its first-quarter results after the close, and the average estimate of analysts polled by Thomson Reuters is for earnings of 52 cents a share in the March-ended period on revenue of $3.15 billion.