Tuesday, September 08, 2009

Evening Briefing for September 8th

* MARKET THEMES FROM TUESDAY: Stocks rallied overnight, pulled back in early morning trade, and then spent the remainder of the session in a range mode digesting its gains and maintaining most of those. The U.S. dollar was notably weak; oil was strong; 10-year Treasury yields rose; and gold was higher, though off its peak level. We saw good advance/decline strength and momentum for the second consecutive trading session; over 1300 issues made fresh 20-day highs. Normally such strength leads us to trade above the prior day's high during the next trading session. I'll be posting shortly, however, a historical analysis that suggests subpar near-term returns following two consecutive days of strong upside momentum. Market wrap here.

* OVERSEAS/OVERNIGHT NUMBERS: 1:00 AM CT - Germany, CPI; 3:30 AM CT - UK, trade balances; 6:50 PM CT - Japan, PPI; 8:30 PM CT - Australia, unemployment. Earnings due out Wednesday here.


-- In case you missed: weekly price targets for SPY;

-- Lessons from the Lehman collapse;

-- Why peak oil is a concern;

-- Hedge fund returns look good and other worthwhile reading;

-- Good review of economic data;

-- Survey of investors: what they expect for stocks, dollar, oil, and more;

-- ETF review provides cautious outlook;

-- Stocks in a sweet spot and more good links.