Stock Market Blog -Dec 4th

We got a nice rally this week, with some perceived good news from Europe, and from the banking system. The DOW was up 492 points on Wednesday after central banks announced a plan to help banks borrow dollars to stem the Euro crisis; also China lowered reserve requirements for its banks. Bank stocks saw a nice rally (XLF), and international markets rallied almost 10% for the week. This was the best rally in the markets since March 2009, when the markets subsequently rallied for two more years.

We also got a good(?) jobs report on Friday, indicating a lower unemployment rate of 8.6%.
Meanwhile, the debt clock is now over the $15,000,000,000,000 mark!

New all time highs:
AMT, COST, FAST, FTI, GPC, HUM, KOG, MCD, KMR, MA, TJX, PETM, ROST, V
Pops: ZUMZ
Drops:

New Unemployment Claims were up, coming in at 400,000 (chart)
This week, no banks were shut down by the FDIC (list)

Next week: Economic reports

Market Commentary

We did get a relief rally from an oversold condition, as I suggested last week. Now lets see if it holds. I think the rally will continue into the new year, when earnings once again will determine the next move. We are back above the congestion area between 1120 and 1220 on the S&P500. Also we should hear more news out of Europe next week

This week's charts:
AMR -airline in trouble?  << last week's comment! This week: Bankrupt!
MCD -star performer over 10 years!

Commodities (charts):
Oil prices were up, closing around $100.96
Natural gas was up a bit, closing near $3.58
Gold was up, closing near $1751
The 30 year Bond futures fell, as stocks rallied, closing near $141.81
The US Dollar dropped, closing near 78.73

NEWS:
S&P 500 Gains Most Since March 2009 on Bank Action in Europe, Retail Sales
Stocks Surge for the Week; Best Gain Since 2009
U.S. Unemployment Rate Drops To Lowest Level In Well Over Two Years
Bond ETFs: Why It’s Time To Dump U.S. Treasury Bonds; Again!
Congressional Stock Trading Fails the Sniff Test, Should Earn a Ban

J.P. Morgan: Verizon is getting its iPhone reward this quarter
About Apple's incredible shrinking P/E ratio
Euro debt crisis solution on horizon
Europe Enters Critical 10 Days to Save Itself
European Banks: Here's a Loan to Buy Our Loans