Markets closed up after a rough few weeks with the DJIA +333, NAZ +82 and SPX +41. The RUT was the biggest major market index winner as it closed +3.6%. In addition, OIL closed down about 3% and "may" be another easy trade.
Strong sectors- brokers+6%, banks+5.25%, homies+4.9%, retail+4.6% and semis +4.5%- laggards but up included oil service, utils, biotech, drugs and defense.
Key stocks-40 out of 40 in the green led by VMW ISRG MER LVS BIDU MS NYX C NVDA BG and GS.
OEX - 99 in the green with TYC red;
NDX-95 green;
NAZ-1,700 net green;
NYSE -2,440 net green;
IBD 100-93 green - led by SNDA ININ PDA ISRG GFIG STP SNHY WFR ARGN BIDU;
VIX -24.04 down 8.5% and trading 8% below the 10 day SMA;
Up volume 20X Down Volume- and high volume at 1.7B shs on the NYSE;
SPX closing at 1,469 and near the 1,475 50% retracement-
DJIA -closing at 13,290 and close to the 50% retracement at 13,370. Weekly chart above on DJIA looks pretty good here although I think we can add lower.
Ten year bond at 4.03% - 2008 earnings on SPX estimated at $100 and if we call it safe at $90, the P/E on the 2008 earnings comes in near 16 or over a 6% earnings yield. Much better than a 4% yield on a 10 year Bond with no growth.
