Bulls are back in charge

Stocks started strong & continued rising all day. Dow gained 82 (recovering about ½ of yesterday's loss), advancers almost 4-1 over decliners & NAZ rose 25. Banks led the advance as the Financial Index also regained about ½ yesterday's loss:

S&P 500 FINANCIALS INDEX

Value 186.95

Change 3.53

% Change 1.9%

S5FINL:IND






MLPs, REITs & junk bonds came back strongly. The indices for MLPs & REITs each rose 2+ today. But the Alerian MLP Index is in the 237s, still down 15 from its highs set at the start of Aug (shown in the chart below). The VIX pulled back 1.71 to 26.18, returning it near its recent sideways trading pattern centered around 25. In this rally, Treasuries sold off. The 10 year Treasury yield backed up 3½ basis points to 3.53%.


Alerian MLP index --- 1 month





Storms in the Atlantic may be bringing the bulls back to oil. Their target is the high for 2009 of 73.

CLU09.NYM

..Crude Oil Sep 09

..69.07

.. 2.32 ......(3.5%)

Troubled financial, CIT (CIT), reported a whopper $1.7B loss but are able to muddle by, at least so far. The stock was up 3¢ to 1.40.

•CIT Group records $1.68 billion 2Q loss
AP (Tue 8:03am)


What a difference 24 hours makes! Storms are brewing in the Atlantic adding excitement to the oil market. But calm has returned to the financial markets beginning with the rebound in the Shanghai stock market. Many are calling for a quiet period to Labor Day.


Dow Jones Industrials --- 1 month