Bank stocks lead markets to new 2009 highs

Following strong Asian & European markets, US continued in a rally mode. The Dow is up 78, advancers over decliners 3-1 & NAZ gained 14. All indices are at 2009 highs. Bank stocks, leading the way, keep charging ahead. The Financial Index is at another 2009 high, but still far the below the record high above 500. An example of how far banks have risen in just the last 2 weeks is Citigroup (C). The graph below shows a 1+ gain in less than 2 weeks, not bad for a low priced stock!

S&P 500 FINANCIALS INDEX

Value 198.86

Change 3.05

% Change 1.5%

Citigroup --- 2 weeks




The high yield sector is up mildly today. The MLP Index & REIT Index are each up 1+ while junk bond funds are higher. Treasuries are off, the yield on the 10-year Treasury bond is up 2 basis points to 3.58%. Treasury bond yields have been waffling around 3½% for 3 months.


Alerian MLP Index --- 1 month





Oil reached a 10 monthly high getting into the 74s. The graph below for the ETF doesn't spell the high that clearly, but it shows the trend of its run up in recent weeks & months. Buyers are betting on strong rebounding economies, especially in China.

CLV09.NYM

...Crude Oil Oct 09

...74.50

.. 0.61 .......(0.83%)

• Oil sets 10-month high on recovery hopes- AP

OIL (ETF) --- YTD





It's hard to believe how far & how fast markets have come in less than 6 months. The last month is more difficult to understand. Coming off a long run up, it would seem markets would need time to rest, but buyers have not gone on vacation even though economic worries (high unemployment, a housing depression, lousy retail sales, etc.) persist.

Dow Jones Industrials --- 1 month