TW3 TECHNICAL

DJIA 10467.16 -30.72 VIX24.13 -.12 10 year 2.98.09 -.0039 30 year 4.0804 +0166
Gold 1181.70 +13.30 Oil 78.95 +.59 USD 81.65 +.03

Economic Conditions -10.7

Mikey Power Index (MPI)
ST Trends Uptrend >60 Downtrend <40

Stocks 50 Oil 53 Gold 25 Bonds 50 Emerging Mkts 62

Short ETF
BGZ 42 DZZ 69 ERY 39 EDZ 46 SMN 47 FAZ 46 SCO 39 SRS 47
Long ETF
BGU 44 UGL 26 ERX 50 EDC 63 UYM 59 FAS 54 URE 59

Mikey Power Stock index Score 5613

AAPL 46 IBM 49 HPQ 54 INTC 51 AMAT 50 TXN 49
ORCL 66 MSFT 63 SYMC 33 INTU 77 ADBE 67
COST 52 TGT 52 WMT 66 BBY 43 AMZN 38 JWN 56 JCP 56
LVS 72 WYNN 57 CCL 53 DIS 35 MCD 43 YUM 52
DAL 56 CAL 64 UAUA 56 AMR 55
CAT 68 DE 74 CMI 67 FCX 59 POT 84 NEM 39 ABX 40
DD 58 DOW 67 MOS 50 MON 76 APD 50 AGU 69
UNP 62 CSX 44 NSC 57 FDX 62 UPS 63
APA 74 CNQ 41 DVN 53 PTR 41 BTU 70 XOM 55 VLO 45
SLB 40 BHI 55 RIG 25
JPM 57 BAC 37 WFC 42 GS 76 MS 47 AXP 43 V 45 COF 42
SPG 54 KBH 58 LEN 63 HD 64 LOW 50
ABT 56 JNJ 30 CL 37 CLX 63 PG 50 K 29 KFT 51 KO 68
NUE 52 X 58 F 77 TM 53 HMC 66
BA 71 HON 50 GD 45 LMT 61 HON 44 NOC 71
MRK 30 LLY 55 GSK 64 PFE 55 UNH 59 AET 60 WLP 42 AFL 57
QCOM 62 CSCO 61 BRCM 48 VZ 66 T 57 BIDU 72 GOOG 61

Stock Universe Plus 23
Up 32
Down 9
Neutral 55

Advisers Bullish 35.6% (High 62 Low 21.3) Bearish 35.6 (High 54.4 Low 15.6)
Mutual Fund purchase/redemption's 1.29 High 1.50 Low .66
Ratio of Premiums Put/Calls .82 High 2.58 Low .34

Mikey OB/OS index (80=OB 20=OS) 66 High 97 Low 0

Monday Obama touted the comeback in Detroit as he visited GM and Chrysler plants in that city. Sounds like the recovery the whole economy is having. Maybe he should visit California there is a great recovery there too.

China announced that it has passed Japan as the world's No 2 economy. It is expect to overtake the US in 2025. Per capita income is just 3800 which is where the US is going.

NATO announced the deaths of 6 more US troops in Afghanistan bringing the July toll to at least 66 surpassing June's record. The White House implored the Web site WikiLeaks to stop posting US war document. A Taliban spokesman told British TV that they were studying the leaks. Who is kidding who?

Q2 GDP growth slows to 2.4% annual rate, that is down from Q1 upwardly revised 3.7% annual rate. Business investment increased 17% on strong demand for equipment and software. Strong corporate profits supported that gain.Consumer spending grew at a 1.6% rate down from a 1.8% rate in Q1. The US economy has typically grown at a 7 to 8% pace at this point after a deep recession.

The GDP report showed that inventories expanded by an annual rate of 75.7 billion in Q2. That was the second straight gain after 2 years of decline. Restocking added 1.1 to GDP growth.

New Home sales rose to a 330,000 annual rate in June after May's record 36.7% dive to a record low of 267,000. In an average economy sales will average around 1 million. New home inventories are at a 7.6 month supply even though new home builders cut building activity. The a normal inventory reading is 3 to 4 months.

Home ownership rate fell to 66.6% in Q2 the lowest since Q4 of 1999.
Foreclosures rose in 75% of the big cities in the 1 st half of 2010. Over 1.6 million homes have been foreclosed.

The Chicago Fed said that Nations economic index fell to -.63 in June form .31 in May as the output and Jobs measures dropped. Negative reading indicate below average growth.

New jobless claims fell by 11000 to 457000. Claims have stuck around 450000 for most of the year after falling for most of 2009.

Consumer debt falls for the 21st straight months to 831 billion. Credit card rates are averaging over 14% to the consumer. You can see why consumer spending is weak they are not getting loans and the consumer loans they getting average 14% which makes paying those loans off impossible. What is happening is that banks have enslaved the consumer. The Fed loans the money to banks at .25% and the banks loan it to the consumer at an average of 14%.

Fed's Beige book reports economic activity rose in the last several weeks but only modestly Growth was flat in Cleveland and Kansas City. and slowed in Chicago and Atlanta. Factory and retail spending rose a little and labor markets improved, real estate and lending remained weak.

Fed chairman Ben Bernanke says the outlook for the economy is "unusually uncertain.

St. Louis Fed's James Bullard said policy makers vow to keep interest rates near zero could encourage a Japanese style of deflation.

Durable Goods, orders for big ticket items fell 1% in June.

Earnings of note:

Fed Ex beats and boosts outlook.
Dupont EPS beats and raises outlook.
Broadcom maker of chips for Iphone and IPad beats and raises outlook.
Swiss investment bank UBS made a profit and cuts losses.
Deutshe Bank rose 6%
SAP EPS rose 15% lowers outlook
Boeing profits fall layoffs seen
Wellpoint Q2 enrollment drops earnings up 11%
Visa earnings beats still concerns about cuts in debit interchange fees
Kellogg Q2 earning fell 3% and net sales dropped 5%.
Colgate profits beat but sales miss.
Exxon Mobil EPS grew 91% in Q2 revenues rose 24%
Royal Dutch said profits rose 15%

Arizona immigration law blocked by federal Judge.

Rangel hit with 13 ethics charges. Only 13?

This week was all about bad economic numbers and good earnings. The boys ran with the earnings and the market rallied. You can see by the numbers above that most stocks are in some kind of an uptrend.

Summary:

Market ended the week slightly over bought with the Mikey Oscillator at 66
Mikey universe is at plus 23 indicating that we are in rally mode.
The weak groups are in Gold and consumer staples.
The strong groups are in economically sensative and commodities.
The bulls and the bears advisors are dead even.
Mutial funds are being redeemed at a 1.29 rate probably because they need the money
Put Premiums are coming down at .82 which is average
The economic reading is at a negative 10.7 and falling.
The Fed is downgrading their forecasts and deflation is being mentioned.
Economic numbers weakened on average with housing boucing off of record May lows.
CNBC website is turing bullish

Mikey