The Market Direction…

>>>Market Condition Analysis>>> CIT reached an agreement with its bondholders to secure $3bn in badly needed capital in order to stave off bankruptcy filings.

In the energy sector, HAL posted better than expected earnings.

Volume was relatively unchanged on both exchanges: NYSE volume -6.41% below average and Nasdaq Composite volume -3.26% below average.

For Monday’s trading, price volume analysis was more or less divided between bullish accumulation @ +37% (price up & volume up) and +38% distribution (price up & volume down). As there was no clear dominant group today, nothing could be gleaned from today’s trading.

Equities, however, are beginning to exhibt signs of being overbought. @ 47% of stocks and @ 69% of equity industries are currently overbought and the pace of momentum is building.

Economic indicators still mixed

June’s Leading Economic Indicators (LEI) came in better than expected @ +0.7% vs. consensus estimates @ +0.5%. This marked the 3rd consecutive monthly gain for the LEI.

 

Large Cap bellweather stocks scheduled to report earnings on Tuesday are the following: Consumer Staples (KO; VFC); Retail-Wholesale (SBUX; SVU); Medical (BSX; DGX; FRX; GILD; MRK; SGP; SYK; UNH); Basic Materials (AKS; DD; FCX); Industrial Products (CAT; ITW; PTV); Construction (SHW); Conglomerates (UTX); Computer & Tech (AAPL; AMD; LLTC; LXK; QLGC; YHOO); Aerospace (LMT; PCP); Oil & Energy (BJS; BTU; NBR); Finance (BXP; CMA; HCBK; RF; SLM; STT; WU); Transportation (CHRW; LUV); and Business Services (RHI).

Market Summary

The DIA closed up +0.99% @ $88.33 and $0.21 below its high and $0.79 above its low. Volume  was +1% above average volume. Daily PMI* is @ 79.00 and weekly PMI* is @ 96.26.

The SPY closed up +1.00% @ 95.07 and $0.16 below its high and $0.94 above its low. Volume was -19% below average volume. Daily PMI* is @ 80.00 and weekly PMI* is @ 96.04.

The QQQQ closed up +0.96% @ 37.92 and $0.08 below its high and $0.36 above its low. Volume was -3.26% below average volume. Daily PMI* is @ 78.95 and weekly PMI* is @ 96.92.

The IWM closed up +1.23% @ 52.54 and $0.20 below its high and $0.51 above its low. Volume was -7% above average volume. Daily PMI* is @ 71.83 and weekly PMI* is @ 94.72.

(*PMI measures and indicates strength of the underylying security’s trading range on a scale of 1-100.)

Industry Summary–> Positive: 199; Negative: 10; Unchanged: 0

Leading Industries: resorts & casinos; silver; general entertainment; aluminum; broadcasting tv; regional airlines; internet service providers; reit-hotel/motel; farm & construction machinery; entertainment-diversified

Lagging Industries: meat products; medical practitioners; health care plans; insurance brokers; toy & hobby stores; medical laboratories & research; cigarettes; communication equipment; regional southwest banks; water utilities

Volume Movers

Stocks Moving Up on Surging Volume

• Large Caps: ETN; HAS; TXN; QLGC; MAT
  

• Mid Caps: AFFX; WERN; WL; PCX; ADTN
  

• Small Caps: ADPT; RUTH; PETS; POLL; GMCR
  

Stocks Moving Down on Surging Volume

• Large Caps: HAR; TSN;
  

• Mid Caps: ASBC; IDTI; HEW;
  

• Small Caps: CPF; ASTE; SAFM; SWSI
  

Market Trend Analysis

Market Momentum (% of Stocks Above Moving Averages)

Technical Support & Resistance Levels for July-20-2009

*Disclosures: Hillbent does not provide individualized market advice. The information we publish regards companies in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification.

Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements.

Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

>>>Market Condition Analysis>>> Intel (INTC) passed the earnings spotlight baton to JP Morgan Chase (JPM) and it did not disappoint investors as it reported recored revenue @ $27.7bn and generated 2Q-2009 EPS @ $0.28 vs. consensus estimates @ $0.04. Like Goldman Sachs, the Darwinian natural selection process of the financial crisis gives JPM a competitive edge over its industry peers. However, it’s stock closed down as it cited deteriorating consumer credit conditions in the future.

Technology has been leading this market and drove today’s trading session with 25 of its sector members representing Thursday’s top 100 performers in the S&P 500. Notable standouts in terms of market cap weightings and performance were IBM, Intel, and Hewlett Packard.

Volume was relatively unchanged on both exchanges: NYSE volume -1.87% below average and Nasdaq Composite volume -3.22% below average.

For Thursday’s trading session, price volume analysis shows investors may have been inclined to book profits ahead of the weekend. @ 53% of the Russell 3000 components were up on declining volume

Economic indicators still mixed

Jobless claims showed substantial improvement, due to seasonal adjustments, with @ -47k drop by reporting 522k vs. consensus estimates @ 535k. The 4 week average also declined to 584.5k. Continuing claims also fell -642k to 6.273mm.

The TIC (Treasury International Capital) report for May 2009 showed @ -19.8bn drop in purchases of U.S. securities. Despite its political rhetoric, China continues to support the U.S. with increased purchases while Japan and Russia’s investments in U.S. securities declined.

The Philly Fed Survey for manufacturing contracted to -7.5 in July-2009 vs. -2.2 in June-2009.

Home Builders sentiment improved to 17 in July-2009 which is its best reading since September 2008. However, any number less than 50 still indicates unfavorable market conditions.

Large Cap bellweather stocks scheduled to report earnings on Friday are the following: Consumer Discretionary (MAT); Conglomerates (GE); lndustrial Products (BMS); and Finance (BAC; BBT; C; FHN; MI; TROW).

Market Summary

The DIA closed up +1.21% @ $87.23 and $0.27 below its high and $1.20 above its low. Volume  was -14% below average volume. Daily PMI* is @ 81.63 and weekly PMI* is @ 95.83.

The SPY closed up +0.97% @ 94.15 and $0.23 below its high and $2.60 above its low. Volume was +7% above average volume. Daily PMI* is @ 91.17 and weekly PMI* is @ 95.94.

The QQQQ closed up +3.36% @ 36.92 and $0.04 below its high and $0.75 above its low. Volume was +38% above average volume. Daily PMI* is @ 98.73 and weekly PMI* is @ 99.59.

The IWM closed up +3.85% @ 51.62 and $0.16 below its high and $1.20 above its low. Volume was +24% above average volume. Daily PMI* is @ 88.24 and weekly PMI* is @ 96.27.

(*PMI measures and indicates strength of the underylying security’s trading range on a scale of 1-100.)

Industry Summary–> Positive: 184; Negative: 25; Unchanged: 0

Leading Industries: air delivery & freight service; semiconductior memory chips; processing systems & products; resorts & casinos; appliances; recreational vehicles; hospitals; nonmetallic mineral mining; agricultural chemicals; entertainment diversified

Lagging Industries: lodging; communication equipment; reit-hotel/motel; surety & title insurance; investment brokerage-national; regional mid-atlantic banks; accident & health insurance; toy & hobby stores; beverages-wineries & distill; regional airlines

Volume Movers

Stocks Moving Up on Surging Volume

• Large Caps: JNS; HOG; SNDK; PPG; FDX; WHR
  

• Mid Caps: PLCM; RGS; ADTN; ADS; CBSH
  

• Small Caps: KLIC; UFPI; HR; Y; CHE; EWBC; SMP; TTWO; ATO
  

Stocks Moving Down on Surging Volume

• Large Caps: CIT; AIG; XLNX; MAR; CTAS
  

• Mid Caps: FCS; RFMD; HE; IMN; SGMS
  

• Small Caps: CELL; CPF; ADPT; MTEX; GY; UCBH; TLEO; SKY; PEET; VIVO
  

Market Trend Analysis

Market Momentum (% of Stocks Above Moving Averages)

Technical Support & Resistance Levels for July-17-2009

*Disclosures: Hillbent does not provide individualized market advice. The information we publish regards companies in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification.

Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements.

Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

>>>Market Condition Analysis>>> Bellweather companies reporting earnings have exceeded expectations, but the most impressive quarterly report came from Intel (INTC) today. It topped estimates and more importantly gave postive guidance for 3Q 2009. While it may not seem rational, INTC proved that it is possible for one stock to drive an entire market and it practically did.

In economic news, the the CPI came in higher than expected @ 0.7% while the NY manufacturing index gave investors one of its best reports - @ -0.55 - since April 2008. Capacity utilization also came in @ 68%.

A glance at the FOMC minutes indicates the Fed sees the economy heading towards greater stabilization in 2009 - 2010 while it remains committed to its quantitative easing via purchases of mortgages, agency debt, and treasuries before year end. In my opinion, this will leave the Fed light on ammunition for a while. Bond vigilantes and American taxpayers have had their fill of economic stimulants and anymore in the near-term just might cause the U.S. capital markets to keel over from a toxic overdose.

Volume was up on both major exchanges: NYSE volume +17% above average and Nasdaq Composite volume +21% above average.

This Wednesday, bulls overwhelmed the bears and sent them scurrying off like raped apes. Price volume analysis shows that 75% of today’s trading reflected bullish accumulation (price up & volume up ) of stocks.

Furthermore, almost 84% of stocks are trading above their volume weighted average price, another sign of institutional demand. Some of this may also be attributed to short-covering as @ 43% of stocks have a short interest ratio of 5 or higher.

In terms of being overbought or oversold the market is neither. The correction has been carried out in a somewhat orderly manner. As a result, the percentage of stocks oversold is @ 16% and overbought is @ 11%. In terms of industry breadth, @ 2% of industries are oversold and @ 3% of industries are overbought. This situtation gives the market a lot of room to bounce around over the next few weeks.

And again, I must reiterate that the primary catalyst for the market direction will be earnings and guidance. JP Morgan Chase (JPM) reports before tomorrow’s opening bell.

Market Summary

The DIA closed up +3.04% @ $86.20 and $0.16 below its high and $1.66 above its low. Volume  was -16% below average volume. Daily PMI* is @ 91.21 and weekly PMI* is @ 97.00.

The SPY closed up +2.92% @ 93.26 and $0.23 below its high and $2.60 above its low. Volume was +7% above average volume. Daily PMI* is @ 91.17 and weekly PMI* is @ 95.94.

The QQQQ closed up +3.36% @ 36.92 and $0.04 below its high and $0.75 above its low. Volume was +38% above average volume. Daily PMI* is @ 98.73 and weekly PMI* is @ 99.59.

The IWM closed up +3.85% @ 51.62 and $0.16 below its high and $1.20 above its low. Volume was +24% above average volume. Daily PMI* is @ 88.24 and weekly PMI* is @ 96.27.

(*PMI measures and indicates strength of the underylying security’s trading range on a scale of 1-100.)

Industry Summary–> Positive: 207; Negative: 2; Unchanged: 0

Leading Industries: toy & hobby stores; resorts & casinos; printed circuit boards; office supplies; foreign regional banks; steel & iron; aluminum; general entertainment; credit services; reit-hotel/motel

Lagging Industries: trucking; restaurants

Volume Movers

Stocks Moving Up on Surging Volume

• Large Caps: JNS; CIT; GCI; INTC; BMS; HAR; DYN; DELL; ALTR; NYT; TER; WPO; AMAT; ICE; AMD; KLAC; VRSN; EFTC
  

• Mid Caps: ADTN; RGS; FCS; DRIV; KFY; LZ; ADS; ACXM; NVE; OSK; KMX; HLX; PLCM; AFFX; VSH; RFMD
  

• Small Caps: AIR; TKTM; TLEO; KLIC; FINL; CELL; TXI; CY; VECO; SAM; WWW; SWSI; PTEC; RTEC; SMP; PKE; SKY; NEU; RHB; VSEA; STL; SMSC; MTEX; HOS; CALM; SMRT; TKLC
  

Stocks Moving Down on Surging Volume

• Large Caps: YUM; AIG; ABT; TSS
  

• Mid Caps: JBHT; WERN; WABC
  

• Small Caps: CPF; UCBH; LUFK; ABFS; HAFC; HUBG
  

Market Condition and Trend Analysis

Market Momentum (% of Stocks Above Moving Averages)

Technical Support & Resistance Levels for July-16-2009

*Disclosures: Hillbent does not provide individualized market advice. The information we publish regards companies in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification.

Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements.

Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

>>>Market Condition Analysis>>> As expected, Goldman Sachs (GS) knocked the ball out of the park in terms of topping consensus estimates for earnings. While the news was welcomed, financials (XLF) went from being yesterday’s leading sector to today’s weakest laggard.

Johnson & Johnson (JNJ), another bellweather, also topped expectations with better than expected earnings. However, the healthcare sector (XLV) was only modestly up as it faces the headwinds of a healthcare bill in the House proposed by Democrats that would allow public health plan options to compete against private insurers.

Economic data was relatively mixed. PPI and Core PPI both increased more than expected while Retail Sales (inclusive of autos) rose more than expected.

Volume was down on both of the two major exchanges: NYSE volume -18.39% below average and Nasdaq Composite volume -12.41% below average.

On the surface, Tuesday’s performance might appear solid as the major indices closed near the upper ends of their narrow trading ranges. However, price volume analysis revealed signs of @ 41% distribution selling patterns (price up & volume down) for stocks. The implications are bearish and at the very least should be heeded as a sign of caution.

Earnings and guidance will be the ultimate drivers of investor sentiment, but this is something that will unfold with the passage of time.

Industry Summary–> Positive: 178; Negative: 31; Unchanged: 0

Leading Industries: jewelry stores; dairy products; textile manufacturing; recreational goods; sporting goods; resorts & casinos; railroads; reit-hotel/motel; broadcasting-tv; printed circuit boards

Lagging Industries: personal computers; internet service providers; health care providers; surety & title insurance; regional northeast banks; regional airlines; medical practitioners; savings & loans; regional mid-atlantic banks; regional southeast banks

Volume Movers

Stocks Moving Up on Surging Volume

• Large Caps: CIT; HAR; TIF
  

• Mid Caps: FCS; UNT; KMX; AM; EXH; ADTN
  

• Small Caps: NOVN; AVD; POOL; LZB; DCOM; CTR
  

Stocks Moving Down on Surging Volume

• Large Caps: AIG; DELL; HUM
  

• Mid Caps: HNT; MLM
  

• Small Caps: CPF; TTWO; CHP; SYNA; ODFL; NWK
  

Market Summary

The DIA closed up +0.42% @ $83.66 and $0.05 below its high and $0.73 above its low. Volume  was -27.52% below average volume. Daily PMI* is @ 93.59 and weekly PMI* is @ 98.18.

The SPY closed up +0.57% @ 90.61 and $0.08 below its high and $0.88 above its low. Volume was -12.95% below average volume. Daily PMI* is @ 91.67 and weekly PMI* is @ 97.83.

The QQQQ closed up +0.37% @ 35.72 and $0.07 below its high and $0.32 above its low. Volume was -0.88% below average volume. Daily PMI* is @ 82.05 and weekly PMI* is @ 95.30.

The IWM closed up +0.59% @ 49.55 and $0.17 below its high and $0.60 above its low. Volume was -31.75% below average volume. Daily PMI* is @ 77.92 and weekly PMI* is @ 93.06.

(*PMI measures and indicates strength of the underylying security’s trading range on a scale of 1-100.)

Market Condition and Trend Analysis

Momentum Analysis (Percent of Stocks Above Moving Averages)

Technical Support & Resistance Levels for July-15-2009

*Disclosures: Hillbent does not provide individualized market advice. The information we publish regards companies in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification.

Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements.

Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

>>>Market Condition Analysis>>> Highly regarded banking analyst, Meredith Whitney, upgraded Goldman Sachs to a buy and financial stocks were off to the races as today’s top market leading sector. Now that the stage has been set, the market will take the bulk of its cues from earnings as quarterly reports and guidance increase.

Volume was mixed on the two major exchanges: NYSE volume -0.92% below average and Nasdaq Composite volume +2.12% below average.

In terms of price volume analysis, amongst the Russell 3000 components, bulls controlled today’s market with 61% bullish accumulation (price up & volume down).

For changes to Monday’s trend analysis, please refer to trend monitor (see below).

Leading Industries: accident & health insurance; regional northeast banks; regional midwest banks; diversified investments; regional pacific banks; reit-office; surety & title insurance; regional southeast banks; regional midatlanctic banks; regional southwest banks

Lagging Industries: dairy products; internet service providers; hospitals; education & training services

Stocks Moving Up on Surging Volume

• Large Caps: AIG; BSX; HAR; SHW; NVLS; LXK;
  

• Mid Caps: OSIP; MVSN; NFLX; SGMS; DLX; TRN
  

• Small Caps: SNX; GBCI; SKX; VSEA; GB; SMRT; MKSI; TLGD; STL; CRVL; LDR; SWM; TQNT; OZRK
  

Stocks Moving Down on Surging Volume

• Large Caps: CIT; EXPD;
  

• Mid Caps: CPRT
  

• Small Caps: CELL; NSIT; ANDE
  

Market Summary

The DIA closed up +2.30% @ $83.31 and $0.08 below its high and $1.92 above its low. Volume  was +1.46% above average volume. Daily PMI* is @ 96.00 and weekly PMI* is @ 96.71.

The SPY closed up +2.43% @ 90.10 and $0.07 below its high and $2.51 above its low. Volume was -+4.42% above average volume. Daily PMI* is @ 97.29 and weekly PMI* is @ 97.79.

The QQQQ closed up +1.89% @ 35.58 and $0.00 below its high and $1.12 above its low. Volume was +10.05% above average volume. Daily PMI* is @ 100.00 and weekly PMI* is @ 99.23.

The IWM closed up +2.33% @ 49.22 and $0.03 below its high and $1.84 above its low. Volume was -7.20% below average volume. Daily PMI* is @ 98.40 and weekly PMI* is @ 89.24.

(*PMI measures and indicates strength of the underylying security’s trading range on a scale of 1-100.)

Market Condition and Trend Analysis

Market Momentum Analysis (Percentage of Stocks Trading Above Moving Averages)

Technical Support & Resistance Levels for Tuesday, July-14-2009

*Disclosures: Hillbent does not provide individualized market advice. The information we publish regards companies in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification.

Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements.

Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.