David Moenning�s Daily State of the Markets: 11/11
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Let�s Keep Going
After an impressive romp yesterday, the bulls are likely to call for a special weekend trading session so they can keep things going. After all, they�ve waited all year to finally get the indices moving into the plus column, so with the calendar running out of pages, why quit now?
After a crummy morning, stocks shot higher on the back of falling oil and what was termed �robust demand� for the Government�s auction of 10-yr notes. The latter may cause some furrowed brows as it doesn�t seem probable that a modest drop in bond yields would be the catalyst for stocks to surge. Yet, that is exactly what happened.
The rest of the rally story comes from a very familiar source � the oil patch. However, while the subject of oil has been a bear�s best friend for the past 2 years, we�ve discovered recently that oil can actually go down as well. Don�t look now, but there is talk in the oil pits of oil testing $50 before the year is out. And while $50 may be a tad optimistic, falling oil prices is a good thing on many levels. In sum, with reports of energy demand falling and current supplies of both crude and natural gas plentiful (for now, anyway) the attitude in the pits has been to take profits. Crude futures closed down $1.13 to $57.80, which was the lowest close since June 10th.
Toss in a stronger-than-expected report from the University of Michigan on Consumer Sentiment and you�ve got a rally on your hands. Stocks finished broadly higher on improving volume. Leadership was solid as the financials have suddenly grabbed the reins and consumer stocks, as well as anything cyclical, are enjoying a nice bounce. And from a chart standpoint, the bulls are certainly pleased to see the indices snap those nasty downtrend lines that had been in place since February on the DJIA and since July on the NASDAQ (however, the small cap indices still have some work to do to break out).
Turning to this morning, so far at least things appear to be on the quiet side. There are no economic reports due out today, the earnings parade has slowed dramatically, and NASDAQ traders appear to have brushed off Dell�s soft guidance for the fourth quarter. At the current time, crude oil is trading down -$0.24 to $57.56, which is close to its 200 day moving average and something to watch. Bond yields are down slightly this morning with the 10-yr at 4.56%. And finally, stock futures are hovering just above unchanged at the moment.
Stocks "In Play" This Morning:
BIDU � Reuters reports the company plans to stay independent
STM � Upgraded at Merrill
AAPL � Bear Stearns positive � notes lead times for iPod Nano shortening
Dell � Met earnings expectations but provided soft guidance for 4th quarter
KSS � Reports $0.45 vs. $0.44
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: INTC, YHOO
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
After an impressive romp yesterday, the bulls are likely to call for a special weekend trading session so they can keep things going. After all, they�ve waited all year to finally get the indices moving into the plus column, so with the calendar running out of pages, why quit now?
After a crummy morning, stocks shot higher on the back of falling oil and what was termed �robust demand� for the Government�s auction of 10-yr notes. The latter may cause some furrowed brows as it doesn�t seem probable that a modest drop in bond yields would be the catalyst for stocks to surge. Yet, that is exactly what happened.
The rest of the rally story comes from a very familiar source � the oil patch. However, while the subject of oil has been a bear�s best friend for the past 2 years, we�ve discovered recently that oil can actually go down as well. Don�t look now, but there is talk in the oil pits of oil testing $50 before the year is out. And while $50 may be a tad optimistic, falling oil prices is a good thing on many levels. In sum, with reports of energy demand falling and current supplies of both crude and natural gas plentiful (for now, anyway) the attitude in the pits has been to take profits. Crude futures closed down $1.13 to $57.80, which was the lowest close since June 10th.
Toss in a stronger-than-expected report from the University of Michigan on Consumer Sentiment and you�ve got a rally on your hands. Stocks finished broadly higher on improving volume. Leadership was solid as the financials have suddenly grabbed the reins and consumer stocks, as well as anything cyclical, are enjoying a nice bounce. And from a chart standpoint, the bulls are certainly pleased to see the indices snap those nasty downtrend lines that had been in place since February on the DJIA and since July on the NASDAQ (however, the small cap indices still have some work to do to break out).
Turning to this morning, so far at least things appear to be on the quiet side. There are no economic reports due out today, the earnings parade has slowed dramatically, and NASDAQ traders appear to have brushed off Dell�s soft guidance for the fourth quarter. At the current time, crude oil is trading down -$0.24 to $57.56, which is close to its 200 day moving average and something to watch. Bond yields are down slightly this morning with the 10-yr at 4.56%. And finally, stock futures are hovering just above unchanged at the moment.
Stocks "In Play" This Morning:
BIDU � Reuters reports the company plans to stay independent
STM � Upgraded at Merrill
AAPL � Bear Stearns positive � notes lead times for iPod Nano shortening
Dell � Met earnings expectations but provided soft guidance for 4th quarter
KSS � Reports $0.45 vs. $0.44
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: INTC, YHOO
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
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