Tuesday, September 22, 2009

Evening Briefing for September 22nd

* MARKET THEMES FROM TUESDAY: Stocks traded with their multiday range on Tuesday, ahead of Wednesday afternoon's scheduled Fed announcement. Intermarket themes were largely bullish, with a weak U.S. dollar and strong gold and oil prices. The ES futures held support in the morning at the 1062 area and stayed above that level in the afternoon, with net buying sentiment in NYSE TICK. Should we hold above the afternoon lows overnight, I would expect a run to test the bull highs. New 20-day highs on Tuesday were 1681; lows were 166, so no meaningful deterioration there. Advancing stocks led decliners handily on the day, returning the advance/decline line specific to S&P 500 stocks within a short distance of its bull high. Market wrap here.

* OVERSEAS/OVERNIGHT NUMBERS: 1:45 AM CT - France, consumer consumption of mfg. goods; 6:50 PM CT - Japan, merchandise trade balances. Earnings scheduled for Wednesday can be found here.


-- Very interesting contrary view on the vigor of the economic rebound;

-- Nice source for market summary and comment;

-- Fed dilemma: tight credit impeding economic growth;

-- Interesting site covering the options market in real time;

-- Issues in rebalancing China's economy;

-- Economic indicators continue to rebound.