Sterling Market Commentary for September 13th, 2011

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.
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