David Moenning�s Daily State of the Markets: 11/08
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Little News, But Nice Gains
There was actually little news to guide traders yesterday, and in fact, there is no economic data of any real importance at all this week. Yet, the bulls decided to work with what they had available, and managed to turn in another day of green screens.
Perhaps the key takeaway from Monday�s session is the fact that the bears aren�t even putting up a fight. It�s as if they recognize what time of year it is and have decided to not even show up for work. As a case in point, stocks have been higher for six of the past seven days, during which time there has been very little, if any, selling pressure evident.
The bulls also took comfort in another decline in crude prices. The oil patch continues to be the place for traders to raise cash and the warm weather in the Northeast seems to be the latest excuse to take profits. Crude futures tumbled around midday and hit a low of $58.70 (which was the lowest level seen since July 21st) before finding support later in the session. A barrel of light sweet crude lost $1.11 during the session and closed at $59.47. The key story here is if oil can find a way to stay below $60 and perhaps work its way lower. This would be a huge confidence booster for the consumer and would definitely help the bulls� cause going into the end of the year.
Turning to this morning, things continue to be on the quiet side an hour before the opening bell. Crude oil is trading a bit lower again with the December contract currently down by a smidge to $59.43. As short-sighted as it sounds, it is the warm weather that continues to be the story in the oil pits.
Foreign markets were mixed but stocks could get a boost later on from the decline in bond yields. The 10-yr is currently trading down to 4.59%, which is considerably lower than the 4.63% close. Stock futures are waffling a bit lower at the moment and suggest a slightly weaker open.
So with the market currently in rally mode, the question of the day is if the bears are going to try and find a way to make the game interesting soon or simply hibernate until January?
Stocks "In Play" This Morning:
INTC/TXN � Banc America initiates both with a buy rating
TASR � Receives an order from San Diego County
TOL � Produces record revenues but guides 2006 deliveries lower
LSI � Downgraded at Lehman
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: INTC, TXN
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
There was actually little news to guide traders yesterday, and in fact, there is no economic data of any real importance at all this week. Yet, the bulls decided to work with what they had available, and managed to turn in another day of green screens.
Perhaps the key takeaway from Monday�s session is the fact that the bears aren�t even putting up a fight. It�s as if they recognize what time of year it is and have decided to not even show up for work. As a case in point, stocks have been higher for six of the past seven days, during which time there has been very little, if any, selling pressure evident.
The bulls also took comfort in another decline in crude prices. The oil patch continues to be the place for traders to raise cash and the warm weather in the Northeast seems to be the latest excuse to take profits. Crude futures tumbled around midday and hit a low of $58.70 (which was the lowest level seen since July 21st) before finding support later in the session. A barrel of light sweet crude lost $1.11 during the session and closed at $59.47. The key story here is if oil can find a way to stay below $60 and perhaps work its way lower. This would be a huge confidence booster for the consumer and would definitely help the bulls� cause going into the end of the year.
Turning to this morning, things continue to be on the quiet side an hour before the opening bell. Crude oil is trading a bit lower again with the December contract currently down by a smidge to $59.43. As short-sighted as it sounds, it is the warm weather that continues to be the story in the oil pits.
Foreign markets were mixed but stocks could get a boost later on from the decline in bond yields. The 10-yr is currently trading down to 4.59%, which is considerably lower than the 4.63% close. Stock futures are waffling a bit lower at the moment and suggest a slightly weaker open.
So with the market currently in rally mode, the question of the day is if the bears are going to try and find a way to make the game interesting soon or simply hibernate until January?
Stocks "In Play" This Morning:
INTC/TXN � Banc America initiates both with a buy rating
TASR � Receives an order from San Diego County
TOL � Produces record revenues but guides 2006 deliveries lower
LSI � Downgraded at Lehman
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: INTC, TXN
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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