Evening Briefing for July 20th

* MARKET THEMES FROM MONDAY'S SESSION: Continued strength on afternoon break above morning range. Firm oil prices, weak U.S. dollar, though we've reversed some of that after hours. Consumer discretionary stocks strong, outpacing consumer staples issues. 10-year Treasury yields firm early, but well off their highs as day progressed. Indicators stronger: 2344 20-day highs, 210 lows. Short-term bullish trend continues as long as we expand number of stocks making fresh 20-day highs.

* OVERSEAS/OVERNIGHT NUMBERS: 12:00 M - Japan, steel production; 12:30 AM CT - Japan, department store sales; 8 AM CT - Canada, Bank of Canada interest rate decision.

* EARNINGS: AMD, AAPL, CAT, DD, FCX, KO, MRK, SGP, LUV, SBUX, UAUA, UTX, UNH, YHOO

* WORTH READING:

-- Looking at the possibility of fiscal ruin; the case for stimulus;

-- Unusually good short-term market information, not for beginners, on Matt Fahmie's site;

-- Thanks to an alert reader for this article on why we keep repeating mistakes;

-- Hats off to a reader for finding this piece on overly optimistic assumptions in Asia;

-- Learning the lessons of the Great Depression;

-- Looking for further economic strength in China;
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