Sunday, August 23, 2009

Evening Briefing for August 23rd

* MARKET THEMES FROM FRIDAY - Stocks broke to the upside Friday morning on strong buying pressure and robust sector participation, never looking back and setting new price highs for the bull move. (See indicator update for a longer-term perspective on the market's strength and the sector update for a look at short-term trend status). As of this writing, in early Globex action, stocks are continuing to add to gains. The U.S. dollar weakened for much of the day, oil traded relatively flat after very early strength and gold held onto gains. The 10-year Treasuries fell, raising rates above 3.55%. While sector and indicator divergences are present--note that we are not seeing new price highs in EEM at this time--short-term momentum is clearly bullish and we have been showing day-over-day strength.

* OVERSEAS/OVERNIGHT NUMBERS: 7:30 AM CT - Canada, retail sales.



-- Risk assets back in favor; review of the market week;

-- Collapsing commercial real estate;

-- California unemployment pushing 12%;

-- Thoughts on Friday's major accumulation day in stocks;

-- A look at market sentiment and much more good reading;

-- How healthy is housing?