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The 'Bests' of This July

The July surge stats:

Dow up 8.6 percent

Best month since Oct. 2002

S&P 500 up 7.4 percent

Best since April 2009

NASDAQ up 7.8 percent

Best since April 2009

Traders aggressively bought the cyclical group in July

  • Commodities up 13.1 percent
  • Consumer Disc. up 9.4 percent
  • Industrials up 9.2 percent
  • Tech up 9.1 percent

While defensive names were up, the notably lagged the cyclicals:

  • Telecom up 3.6 percent
  • Utilities up 3.7 percent
  • Healthcare up 5.8 percent
  • Consumer Staples up 6.2 percent

The Dollar weaknessis becoming a big story, with the Dollar Index at the lowest level since September 2008. Good for commodities and commodity stocks, not good for U.S. foreign relations.

Next week: 1) July nonfarm payrolls are expected to decline, but at a slower pace than previous months, and 2) auto sales for July should reflect the successful "ash for clunkers" program...the House of Representatives extended the program, which offers $4,500 to bring in old cars...the $1 billion passed to pay for it ran out because the program was so successful, with about 250,000 cars brought in...the Senate still has to act on the extension.

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