Weekly Wrap

The bulls flexed their muscles last week leaving all of the major market averages in positive territory. For the week, the Dow gained +2.2%, the S&P 500 rallied +1.4%, the Nasdaq +1.5% and the Russell 2000 +0.4%. Year to date, the Dow is currently up +11.6%, Nasdaq +12.1%, S&P 500 +9.5%, and the Russell 2000 +8.6%.

Investors were upbeat about earnings, takeover activity, and more stock buyback announcements. In addition, factors like worldwide liquidity and indications that the so-called smart money continues to go long while the dumb money goes short and/or remains sidelined, enabled the Dow to close just 93 points from the 14,000 level.

While the bears continue to point out the same issues (i.e. higher energy prices, tepid consumer spending, interest rate fears, falling dollar, and housing market collapse, etc.), Wall Street isn't paying much attention. Their focus is on earnings season and expectations that the bar has been once again set low enough that good times are ahead. Let's hope they're right, but be prepared no matter what.

According to my end-of-week scans, top performing sectors last week were: aluminum, technical services, aerospace/defense, copper, trucks, semiconductors, farm & construction machinery, mining, precious metals, oil & gas, foreign regional banks, technology, food, heavy construction, basic materials and waste management. Weekly underperformers were long distance carriers, auto parts stores, sporting activities, electronics stores, office supplies, major airlines, book publishing, insurance, auto dealerships, mortgage investment and housewares.

As for stocks, standout weekly gainers were: ALNY, REDF, ELON, VSCN, GMST, HOKU, KBR, GBX, NGA, VRNM, GPK, TSL, SGMO, SWIM, PYX, FSLR, SCHN, MMR, SOLF, VGZ, SIFY, FLE, SGR, SIGM, CKSW, ISIS, RZ, IMMR, IGLD, DRYS, TASR, and EXM.

Standout losers were EGO, VTAL, PFB, ACA, FACE, AHM, WON, CPWR, DEIX, SPC, NRMX, PTRY, NOVN, PLCE, WTSLA, MVSN, CRY, SONO, and RAS.

Next week we have a lot on the docket so please make sure to get plenty of rest this weekend. Among the more notable events ahead include testimony from Bernanke, inflation reports (PPI & CPI), housing starts and permits, along with the real start to earnings season. It should be fun. See you tomorrow!