Daily State Of The Markets: Another Way To Play The Consolidation Phase

David Moenning submits: Good morning. Although there is a sea of red numbers from the bourses across the pond this morning, and the futures are pointing to a lower open, we would be remiss if we failed to point out that today marks the second anniversary of the end of the Credit Crisis Bear Market and/or the start of the current bull run.

David Moenning submits: Good morning. Stocks fell again on Thursday as traders were treated to bad news early and often. The negative news flow started in China, flowed through Europe, and then made its presence felt here at home in the good 'ol US of A. However, for the first time in the last nine trading sessions, the bulls actually tried to make a stand.

By David Moenning: Good morning. In Thursday's missive, I wondered aloud if we might be seeing the beginnings of a shift in the trend of the economic data. This would be important because from a big-picture standpoint, the macroeconomic outlook has been a driving force behind the three important trends seen in the stock market so far in 2012. So, if the trend of the data is changing, then it makes sense to assume that the stock market trend might be able to change right along with it.

By David Moenning: Good morning. It is often said that a disagreement between opposing sides is what "makes a market." What's especially interesting about this concept in the stock market is the fact that although there are two clearly defined teams in the game, oftentimes the expectation each has with regard to the future doesn't vary to any great degree.

By David Moenning: Publishing Note: I have an early meeting on Friday and will not publish a report. Daily State of the Markets reports will return on Monday.Good morning. Stocks have been down five days in a row. 'Sell in May and go away' is working yet again. The news out of Europe just seems to get worse with each passing day. (Does Germany's high court seriously need 3 months to decide whether the ESM is legal?

By David Moenning: Good Morning. By now I'm sure you are aware of the fact that the S&P's 12% gain in the first quarter was the best Q1 of any year since 1998. And by now I'm guessing that you are also well aware that just about everyone on the planet is looking for a pullback, a consolidation, a correction, or even a "sloppy" phase to set in.

David Moenning submits: Good morning. I am catching a very early flight to a family wedding in North Carolina, so please accept my apologies for the brevity of this morning's missive. (Note to self: It's probably a good idea to check your itinerary before noon on the day prior to the trip!)

David Moenning submits: Good morning. As you are no doubt aware, stocks have been rallying since September 1 on the hope that the Fed's efforts will not only put an end to the soft patch that cropped up in the economy over the summer but also jumpstart economic growth again. It will suffice to say that this view created a heads-stocks-win, tails-stocks-win-too environment and as such, almost all news has been good news for the past 45 days.