Canadian Retail Sales Surprise to the Upside

The stock market is a leading indicator. In general, it will lead the economy. We are now starting to see continued improvement in the various economic indicators and most world economies are emerging from recession. On the ground, for the average person, the recovery will still remain slow as the job numbers show that recovery in this area will be sluggish. Europe industrial orders rose in July.

Futures are up marginally and the market condition scans indicate an up open and most likely an up day. However, energy is still weak, meaning any positions that are entered will need to be monitored carefully for sudden pullbacks. The market bias indicators are showing a statistical bias for a pullback in the next one to five days. We will monitor both sets of indicators for any entries.

For the most part, we have been sitting primarily in cash, looking for opportunities due to the markets being in a bearish phase and summer. The markets remain in a bullish phase, suggesting that we can potentially look for entries. Caution is still warranted due to the lack of energy and volume though.

Two stocks showing technical buy signals are Netapp Inc. (NTAP) and E-House China Holding Limited (EJ). Please note no FUNDAMENTAL DUE DILIGENCE has been done on either of these stocks.

Index	Change	%Change	Level	Phase
TSX	+130.67	+1.22%	10831.18	Bullish
DJIA	+155.91	+1.67%	9505.96	Bullish
Nasdaq	+31.68	+1.59%	2020.90	Bullish
SP 500	+18.76	+1.86%	1026.13	Bullish
Russell 2000	+12.83	+2.26%	581.51	Bullish
NYSE	+122.86	+1.87%	6676.26	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a positive bias

Energy: weak

Primary Trend: sideways

Sector	Phase
Consumer Staples	Bullish
Healthcare	Bullish
Technology	Bullish
Utilities	Bullish
Energy	Bullish
Financials	Bullish
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart