Before the Open (Jul 11)

Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed up across-the-board. Japan rallied 4%, and Hong Kong, Singapore, Australia, India, Indonesia, South Korea and Taiwan did better than 1%. Europe is currently posting solid, across-the-board gains. Germany, France, Austria, Belgium, the Netherlands, Sweden, Switzerland, Poland, Turkey, Finland, Norway, Spain and Portugal are up more than 1%. Futures here in the States point towards a moderate gap up open for the cash market.
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LB Weekly – the indexes, the breadth indicators, a look at the big picture
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The dollar is up. Oil is down; copper is up. Gold is down; silver is up. Bonds are down.
I don’t have anything new to add to the comments made over the weekend in the weekly report.
Despite some headwinds the market market is in good shape, and barring some bad news from Europe or an across-the-board bad earnings season, which is getting started right now, I continue to expect higher prices to be registered. I’m fully on board with the S&P rallying to 2300-2400. It doesn’t make much sense, but that’s why it can happen. When too many traders and investors get stacked on one side of the market (the market’s tone has been getting more bearish), a move to the opposite side often plays out.
I posted the following chart in the weekly report. The 10-day of the AAII bulls is at its lowest level in 20 years. Previous low prints have coincided with major market lows (yellow) while other bottoms acted as nothing more than pauses within uptrends (green). In either case, low prints have led to higher prices.

I continue to like gold and silver overall, but anything goes in the near term with those.
I don’t like oil right now, which is good because I’d rather have a healthy pullback before getting aggressive again.
Bias remains to the upside. More after the open.
Stock headlines from barchart.com…
Nintendo (7974 Japan) rallied sharply by +25% today, adding to last Friday’s rally of +9% after the runaway success of the company’s new Pokeman GO phone game that challenges players to find Pokeman characters in the physical world.
HeartWare International (HTWR +0.19%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Leerink Partners.
A U.S. Court of Appeals in San Francisco said that Monster Beverage (MNST +0.24%) can be sued over false advertising claims related to the caffeine content of its drinks.
T2 Biosystems (TTOO -30.09%) gained over 1% in after-hours trading after Tiger Management reported a 5.2% passive stake in the company.
Biostar Pharmaceutical (BSPM -8.40%) slipped -2% in after-hours trading after GeoInvesting said the recent 260% surge in the stock price warrants some “due diligence” to confirm the market’s euphoria.
BorgWarner (BWA +3.91%) rose 0.3% in after-hour trading after GIC Private reported a new 5.09% passive stake in the company.
Network-1 Technologies (NTIP +2.55%) jumped 17% in after-hours trading after its subsidiary, Mirror World Technologies, agreed to settled its patent litigation against Apple. NTIP will receive $25 million from Apple for the settlement.
Today’s Economic Calendar
10:00 Labor market condition index
10:00 Fed’s George: U.S. Economy
1:00 PM Results of $24B, 3-Year Note Auction
9:30 PM Fed’s Mester speech
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers