Dow jumps to new 2009 high

Encouraging words from Federal Reserve chief Ben Bernanke that the economy was ready to recover along with news that housing sales rose to 2 year highs brought strong gains for stocks. Dow advanced 145, advancers over decliners 4-1 & NAZ rose 27 taking it above 2K again. Banks (along with techs & high yield securities), market leaders, had nice gains. The Financial Index is at a new 2009 high.

S&P 500 FINANCIALS INDEX

Value 195.41

Change 3.71

% Change 1.9%

MLPs are underperforming securities, a new experience for 2009. The Alerian MLP Index was up only 1+ to the 240s & the Dow Jones REIT was up another 4½ bringing it close to its 2009 high. Junk bond funds participated in the strong market while Treasuries sold off. The yield on the 10-year Treasury bond rose 9 basis points to 3.53%.

Alerian MLP Index --- 2 weeks




Dow Jones REIT Index --- 2 weeks




Oil continues strong as the new (Oct) contract is flirting with 2009 highs.

CLV09.NYM

...Crude Oil Oct 09

...73.33

... 0.42 .......(0.58%)

Good news abounds, bringing out more stock buyers. Ben Bernanke said the economy is on the cusp of recovery. He also said, "the prospects for a return to growth in the near term appear good." Home sales jumped 7.2% to a 5¼M annual rate, the highest in almost 2 years. But the median price fell by 15%. Foreclosures & credits for first time buyers are helping increase sales.

•Bernanke Says Global Economy Starting to Emerge From Recession on Stimulus
•U.S. Existing Home Sales Surge 7.2% to Highest Level in Almost Two Years


The volatile Shanghai market continued in its recovery mode, up 1.7% overnight. US stock markets are ready to go higher. Dow is at levels not seen since Oct.

Dow Jones Industrials --- 2 weeks