Swing Trading Strategies & Stock Picks Since 2003

Good morning. Premarket futures suggest a positive start to the new trading week. The newswires are on the quiet side and the lone economic datapoint will arrive at 1PM with the Housing Market Index as economists anticipate an unchanged reading of 16 for that report.

Premarket gainers: DYAX, FMCN, RHD, CRN, OMRI, SOLF, CDNS, MHGC, UB, MITI, BRCM, ESLR, JASO, TSL, DNDN, BLD, SDTH, GFI, SNG, & SOL.

Premarket losers: PWRD, BEAT, TTWO, FRE, FNM, HSY, VSE, EBS, MPG, CTRP, & JBLU.

While there is considerable uncertainty about whether underlying economic fundamentals support recent market gains, the market seems to be adopting a glass half-full mentality providing that inflation remains under control. No doubt, we're still in the hole for the year. Year-to-date, the major indexes are down as follows: the Dow, down -12.1%; the S&P 500, down -11.6%; the Nasdaq, down -7.5%; and the Russell 2000, down -1.7%. The last one may be of some surprise to many of you.

Looking ahead this week, the big focus will be on housing starts on Tuesday especially since most believe the economy will not grow until housing picks up. The other market mover will be the PPI even as recent declines in oil make the July PPI somewhat outdated. Let's make it a great week!