Thursday, September 10, 2009

Evening Briefing for September 10th

* MARKET THEMES FROM THURSDAY: Stocks traded in their overnight range on low volume early in the day, but buying pressure--as expressed by NYSE TICK--was consistently strong through the day. That led to an upside breakout that took us to bull market highs in the major indexes. This has been an unusually consistent rally, with solid advance-decline action and buying interest. Indeed, the A/D lines for the major averages have registered bull highs. The number of stocks registering fresh 20- and 65-day highs continues to rise day over day, so that we're not getting any transition sell signals. We saw fresh lows in the USD vs euro today, but interestingly we're not seeing new highs in AUD/USD. Oil and gold also did not make new highs for this move today. I'll be looking for signs that these markets, which led the recent stock market rally, might be forewarning of some consolidation of those gains.

* OVERSEAS/OVERNIGHT NUMBERS: 3:00 AM CT - Italy, industrial production; 3:30 AM CT - UK, producer prices. Earnings reports scheduled for Friday here.


-- What stories *aren't* being told in the media;

-- Worthwhile thoughts on trading gaps;

-- Unstable market relationships, questioning moving average systems, and much more;

-- Thanks to Adam for this link to an industry view of hedge funds;

-- Economy stronger, but still facing headwinds;

-- Nice overview of recent strength in the major indexes.