US Stock Market 1st week Update October 2010

Manufacturing activity grew at a slower pace in September versus August confirming other reports that economic growth is slowing. Reports to watch on Monday are Factory Orders and Pending Home Sales. Tuesday, the service sector will be tracked by the ISM Non-Manufacturing Index. Chain Store Sales will give a peak at the health of the retail consumer on Thursday, and the Consumer Credit figures will show if outstanding credit is still contracting. The Employment Report on Friday a month ahead of elections will take on added importance to the market.

Stocks to Watch: Citigroup (C) jumped 4.6% on a huge 770 million shares as the U.S. Treasury has now sold half the shares it received from the bailout. Energy and Material Sectors outperformed with Consol Energy (CNX) rising 3.7% as the mining company will close its Utah mine and layoff 231 workers. Freeport Mcmoran (FCX) reached a multi-month high as gold prices hit record highs. The Wall Street Journal reported that Gymboree Corp. (GYMB) is seeking private equity buyers that may have an interest in the company. Fidelity National Financial (FNF) and First American (FAF) came under pressure as questions arose over paperwork that may put millions of real estate titles into question.

Special Note: Markets are starting to show waning upside momentum as the S&P 500 is up a net 3.5 points over the last 9 trading days. Daily Sentiment readings from trade-futures.com are once again at extreme bullish levels typically found near peaks for many markets such as stocks 87%, gold 90%, silver 95%, bonds 93%, Euro 90% and many other commodities. Talk of a second quantitative easing or QE2 by the Federal Reserve no doubt has sparked much of the enthusiasm for the different asset classes, but the market seems to have discounted much of the upside from this potential action already.

Source:http://blog.nobletrading.com