A Look at Monday’s Activity:
The overall market staged a late rally with the Dow Jones Industrial Average moving almost 200 points higher in the final 45 minutes of trading on the day. This was an impressive rally that saw almost every sector index I track move higher on the day. The strongest sectors were the Semiconductors, Banking, High Tech, Retailers, Oil Services, Insurance, Broker/Dealers, Healthcare related, and Consumer indices. There was weakness in the Gold/Silver, Commodities, Chemicals, Pharmaceuticals, Cyclicals, and Transports.
A Few Thoughts Before the Open:
In looking at the charts from yesterday’s trading activity I have the following thoughts and comments.
1. The 1st being that high tech indices were obviously the strongest performers on the day. I believe this is primarily a result of Broadcom’s acquisition of NetLogic for $3.7 billion.
2. Despite the strong move back higher at the end of the day, the vast majority of the indices I looked at simply recovered from a deeply oversold position. However it still left the majority of them with negative chart patterns. I saw nothing to indicate a market rally would start anytime soon.
3. The healthcare related indices all look to be under pressure. I think this is a result of the recent appeals court ruling regarding Obamacare. Once again, regulations matter.
4. The gold indices moved south in way that raises some concerns. If we get some follow through today, we could see the start of a pullback in gold.
It looks like I missed the inclusion of the economics news calendar from the Sterling Weekly yesterday. As a result, I have included it in today’s blog:
Sterling Calendars for the Week of September 12th, 2011
| Date | Est. Time |
Release | For | Consensus | Prior |
| 09/13 | 8:30am | Export Prices – Ex. Ag. | Aug. | N/A | 0.5% |
| 09/13 | 8:30am | Import Prices – Ex. Oil | Aug. | N/A | 0.4% |
| 09/13 | 2:00pm | Treasury Budget | Aug. | ($132.0B) | ($90.5B) |
| 09/14 | 7:00am | MBA Mortgage Index | 09//10 | N/A | (4.9%) |
| 09/14 | 8:30am | Producer Price Index (PPI) | Aug. | (0.1%) | 0.2% |
| 09/14 | 8:30am | Core Producer Price Index (Core PPI) | Aug. | 0.2% | 0.4% |
| 09/14 | 8:30am | Retail Sales | Aug. | (0.5%) | 0.5% |
| 09/14 | 8:30am | Retail Sales Ex – Auto | Aug. | (0.2%) | 0.5% |
| 09/14 | 10:00am | Business Inventories | Jul. | 0.4% | 0.3% |
| 09/14 | 10:30am | Crude Inventories | 09/10 | N/A | (3.963K) |
| 09/15 | 8:30am | Initial Claims | 09/10 | 410K | 414K |
| 09/15 | 8:30am | Continuing Claims | 09/03 | 3,700K | 3,717K |
| 09/15 | 8:30am | Core Consumer Price Index (Core CPI) | Aug. | 0.2% | 0.2% |
| 09/15 | 8:30am | Consumer Price Index (CPI) | Aug. | 0.2% | 0.5% |
| 09/15 | 8:30am | Empire Manufacturing | Sep. | (5.0) | (7.7) |
| 09/15 | 8:30am | Current Account Balance | Q2 | ($121.0B) | ($119.3B) |
| 09/15 | 9:15am | Industrial Production | Aug. | (0.2%) | 0.9% |
| 09/15 | 9:15am | Capacity Utilization | Aug. | 77.0% | 77.5% |
| 09/15 | 10:00am | Philadelphia Fed. | Sep. | (15.0) | (30.7) |
| 09/16 | 9:00am | Net Long-Term TIC Flows | Jul. | N/A | $3.7B |
| 09/16 | 9:55am | Michigan Sentiment | Sep. | 53.0 | 55.7 |