Financial and Energy Stocks Lead Market Higher

DJIA + 89.64, +0.79% SP500 + 10.15, +0.80% NASDAQ Comp. + 20.49, +0.87% Russell 2000 + 9.44, +1.30% Exchange NYSE NASD Advancing 2,359 1,827 Declining 730 992 Oil $118.15 +$1.88 Gold $834.00 +$5.90 $SOX 358.81 +1.83 Strongest Sectors: XLF +1.93%...XLE +1.58%...XLK +0.96% Weakest Sectors: XLV +0.15%...XLI +0.29%...XLY +0.30% Oil moved higher again over concerns that Hurricane Gustav could disrupt oil flow in the Gulf of Mexico. XLF was the strongest sector today with energy second. All Money center banks BAC, JPM, C, USB, DB, IBN, and WFC were all higher on the day. With both oil and gold up again commodity related stocks oil, coal, gold, Ag and steel stocks rose. The key for these groups continues to be if weather disrupts oil flow in the Gulf. If it has little or no impact on oil supplies don’t be surprised to see oil fall these commodity related stocks with it. A positive durable goods report helped all sectors move higher on Wednesday as the broad indices bounced up from support levels. The RUT closed above its 20 DMA and stayed above its 200 DMA for the fourteenth day in a row. The RUT is again above its 20, 30, 50 and 200 DMA. The DJIA closed above its 30 and 50 DMA and at its 20 DMA. The DJIA continues in sideways consolidation as evidence by the flattening 20, 30 and 50 DMA The SPX also is a sideways consolidation with flattening 20, 30 and 50 DMA closed slightly above all three averages. The Nasdaq closed above the high of the low day in a bull flag bounce. Most of our watchlist stocks were higher today which can be seen in our Wednesday’s Action section below. Very few stocks were down more than 60 cents. Our short-term trend status is neutral. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF Down Trending: XLE, XLU Wednesday’s Action Moving Up: BIDU, FSLR, SOHU, BUCY, POT, MOS, BTU, CNX, X, ANR, MEE, FWLT, LDK, FMCN,WRC, MTL, RIMM, AAPL, IPI, AGU, NUE, AEM, DRYS, CLF, MER, V, CF, LEH, FNM, FRE, GDX, SINA, IBM, KMT, NIHD, INFY, COH Moving Down: AMLN, UAUA, PNRA, CELG, Intermediate Term Market Trend: Up Short Term Market Trend: Neutral