DOW Rallies

Good morning. We attended a block party yesterday. The company was fun, the food was very good, and I wished I had brought a sweater. Someone even brought champagne, how cool is that.

Figures, September is traditionally the worst month for Wall Street. If you haven't noticed, the markets are breaking out of high trading levels and this September is on course to be the best September since 1939. Does writing this down jinx it? Who knows.

Allegedly the week is filled with light technical economic data and so the bulls might have it. Oil continues to fluctuate between $70 and $80, positive economic news continues to trickle in, and last week Bernanke indicated that the slow growth scenario might not be etched in stone and that was the first time I could recall reading that kind of optimism about the recovery.

We need one solid indicator that employment is improving somewhere, just one little thing from somewhere.

CNN: Dow on track for the best September since 1939

Last week, stocks rose more than 2% after the major indexes broke above key technical levels early in the week.


...analysts don't foresee a pullback in stocks in the week ahead.

Bloomberg: Dubai Stocks Rise to Four-Month High on Global Growth Prosepects, Oil Gain

Oil rose the most in two weeks.

Reuters: Wall Street Week Ahead: Stocks eye strong September finish

The S&P 500's move above 1,130 this week let the broad index break out of its recent trading range.


Technical analysts are watching 1,173 as the S&P 500's next level of resistance.


"What's so important about moving above a trading range is it signals a willingness to buy at higher prices."