Moenning�s Daily State of the Markets: 10/05

"Bears Refusing to Go Quietly"

- Yesterday the bears reminded us that they won�t go quietly into hibernation
- Stocks started higher but fell victim to a combination of factors after lunch:
- PG & CLX said higher costs for raw materials and energy will hurt
- A spike in Natural Gas (even as oil declining) - Production remains shut-in
- 1225 support on S&P broke � which brought in technical selling
- Hedge funds playing musical sectors (selling energy, buying healthcare)
- Dallas Fed President Fisher said that inflation was at �high end of comfort zone� (but made no mention of what inning it is)

- Big Picture: Stocks stuck in range and looking for something to break logjam
- Bulls looking to earnings
- Bears looking for inflation to break consumer�s spirit (heating bills will begin to show up soon)
- Bullish Sentiment Drops to 49.5 � a positive for stocks
- Bulls looking to make a �stop� here this morning

Stocks "In Play" This Morning:
INTC � Barron�s says concerns may be overdone
NKE � Michelle Wie to go pro and signs with Nike
DELL � Estimates cut at Pru
MOT � Reiterated �outperform� at Thomas Weisel � cites restructuring boosting margins
MERQE � Says will �miss� 3rd qtr estimates

To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI

You May Also Be Interested In

• OpenAI eyes 2027 hardware entry with high-end smart speaker, Bloomberg reports
• Airbnb beats Q2 estimates, lifts 2026 outlook on strong travel demand, shares up
• Citi says buy the pullback in memory stocks as upcycle is still in early innings