Monday Morning Market Review: 2007-10-08

Scoreboard

INDEX

10/5/07

CLOSE

ALL TIME HIGH

% CHANGE

YTD

% CHANGE

52 WEEK

S&P 500

1557.59

1557.59 (10/5/07)

9.8%

15.4%

Dow Jones Industrial Average

14066.01

14087.55 (10/1/07)

12.9%

18.7%

INDEX

P/E

TRAILING

P/E

FORWARD

DIVIDEND

YIELD

S&P 500

18.1

16.6

1.8%

Dow Jones Industrial Average

16.9

16.1

2.1%



Trend Analysis


Trend ***

S&P 500

DJIA

Primary

(200 day MA)

Up

Up

Intermediate (50 day MA)

Up

Up

Short-term (10 day MA)

Up

Up

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.

Richard Russell’s PTI


Russell’s PTI is Bullish

Facts & Interesting Tidbits

  • The DJIA is up 9.5% from its mid-August low.
  • The DJIA was up 1.2% for the week, its fourth straight weekly gain.
  • The DJIA reached a new record close of 14087.55 on Monday.
  • The DJIA hit a new intraday high of 14124.54 on Friday.
  • The S&P 500 closed at a record high on Friday.
  • Volatility has increased – between July 19 and late September, roughly half the trading sessions freatured swings in the S&P 500 of at least 1%. By contrast, in all of 2005 and 2006 combined there were less than 60 trading days in which prices moved more than 1%. (Source: Wall Street Journal)


The Bottom Line

Markets hit record highs last week as investors hope the worst is over. A positive employment report drove the market higher on Friday. The market continues its bullish trend. The Dow continues to lead the way as investors are favoring large multi-national businesses.

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