At the end of each trading week, Hillbent scans the equity market for potential anomalies which exhibit extremely oversold and overbought conditions. Past observations have revealed that such candidates may experience reversal corrections to the upside or downside once the market reconfirms that their fundamentals remain solidly intact or relatively poor. From a contrarian perspective, these lists may also serve as a precursor to changes in institutional sentiment and underlying fundamentals.

(The purpose of this report is not to provide specific recommendations, but instead serve as a time-saving reference tool and starting point for investment ideas as the upcoming trading week unfolds. Of course, the results generated are not always perfect and users are strongly encouraged to perform their own due diligence on these names. Note that overbought and oversold conditions are based upon proprietary algorithms and quantitative models instead of conventional technical analysis indicators. As a supplement to this report, please refer to our ETF Trends Report to determine if market direction trends support a bullish or bearish investment bias over short-term, intermediate, and long-term timeframes.)

The complete list of Brazil ADRs traded on U.S. exchanges is listed below:

Emerging markets are the best performing markets this year. In these markets, the main market indexes of countries like Brazil have skyrocketed year-to-date (YTD) relative to other countries. For example, the MSCI Brazil Index ETF (EWZ) is up an incredible 99.42% as of September 30, 2009. Some of the Latin American ADRs have also had great runs.

The list below shows the Latin American ADRs which are up 100% or more as of Oct 6, 2009:

While the threat of a potential trade war with China momentarily pushed equities lower Monday morning, a wave of bargain hunting propelled stocks off their lows, causing nervous shorts to cover, and under-invested money managers to lift offers into the close.

After last week’s sharply higher performance, many traders concluded the broad market was due for a rest, while clearly extended and lacking momentum; however, erstwhile Bears were sadly mistaken as the little engine that could kept chugging along on Monday.

At the closing bell, the S&P 500 (1,028.00 +2.43 +0.24%), DJIA (9,539.29 +30.01 +0.32%) and NASDAQ Composite (2,024.23 +6.25 +0.31%) were up on the day, but the internal signs were flashing warnings.

The Toronto Exchange Composite (10,920.53 +130.56 +1.21%) did make a substantial gain, but the Toronto Venture Board (1,183.67 -2.69 -0.23%) ended down, reflecting a sidetracking gold price on the day ($GOLD 945.10 +3.70 +0.39%) but a crack in the Crude Oil price ($WTIC 71.85 -2.52 -3.39%).

The appetite for foreign stocks among U.S. investors has high since last year despite the credit crisis and the current recession. Last year's market performance proved that the so-called decoupling theory of emerging markets being different from developed markets is not correct. In fact, many of the emerging market indices such those in Russia, India, Brazil, China actually fell much more than the developed market indices.

U.S. investors' attraction towards overseas stocks started increasing after the dot-com bubble burst. These investors hold foreign stocks for a variety of reasons such as diversification, high dividend yields, and explosive growth in emerging markets. The interest in foreign company stocks via American Depository Receipts (ADRs) continued through the crisis last year. According to Bank of New York Mellon's ADR site, over 735 New Depositary Receipt Programs from around the world were introduced between Oct. 1, 2008 and Aug. 17, 2009. The majority of these companies were listed on the OTC markets. Some of the well-known companies listed on the OTC markets such as Credit Agricole (CRARY.PK) and Careefour (CRERY.PK) of France. The 735 ADRs have very thin daily trading volumes since they are new and are not listed on the organized exchanges.

Financial stocks (XLF +2.6%) led the charge Thursday in NY. That’s two days in three after being clobbered on Monday. Of course, the Fed conference annual confab at a resort in Jackson Hole Wyoming is underway Friday and the monetary authorities in the US are putting on a brave face. It must be easier knowing that China and Europe equity markets are in rally mode.

At the closing bell on Thursday in New York, the S&P 500 (1,007.37 +10.91 +1.09%) closed at the third highest level this year, close to the 1012.73 high set on Aug 13. The DJIA (9,350.05 +70.89 +0.76%) and the NASDAQ Composite (1,989.22 +19.98 +1.01%), with solid gains, also almost made new highs for the year. The US market is now ahead on the week despite suffering a loss of almost -2.5% on Monday.

Faced with weakness in key overseas markets, US equities opened weaker, later firming after a report on oil inventories caused crude oil (USO +3.58%) to spike higher. Large cap oil stocks Exxon (XOM +2.27%) and Chevron (CVX +1.82%) led the charge, helping the broad market to a second consecutive day of moderate gains, albeit on anemic volume.

At the closing bell on Wednesday in New York, the S&P 500 (996.46 +6.79 +0.69%), the DJIA (9,279.16 +61.22 +0.66%) and the NASDAQ Composite (1,969.24 +13.32 +0.68%) made solid gains, which, combined with Tuesday’s gains, almost made the market flat on the week. By all accounts at this point Thursday, we should be ahead in the morning.

[Excerpted from Bill Cara's Daily Report]

With a few large index components hyped to gap higher at the open, there appeared to be a stronger open than what most traders in the equity market experienced. In any case, the US equity market discovered that after being on holidays for two days, there were some bids from risk-takers and from 10:00am ET until noon, the major market indexes rallied. After that they sidetracked.

As of July 31, 2009, the S&P 500 Index and the Dow Jones Composite Index are up 10.97% and 2.47% respectively. But many of the ADR indices have gone up much higher. The Year-To-Date (YTD) performance of some of ADR indices are as follows:

• BNY Mellon ADR Index: 21.44%
• BNY Mellon Asia ADR Index: 27.54%
• BNY Mellon Dev Mkts ADR Index: 16.65%
• BNY Mellon Emg Mkts ADR Index: 43.22%
• BNY Mellon Europe ADR Index: 15.59%
• BNY Mellon Lat. Amer. ADR Index: 53.96%

So far this year, the developed markets are lagging the performance of emerging markets.

And we thought Friday was boring! If you left the room Monday for 30 minutes early in the session, you could be excused for thinking traders were taking an all-day siesta. Forex and bond prices barely budged, and volume in the equity market was pathetic.

Prices of equities did advance however. At the close, the S&P 500 (927.23 +8.33 +0.91%), the DJIA (8,529.38 +90.99 +1.08%), and the NASDAQ (1,844.06 +5.84 +0.32%) were all firmer thanks to the early session boost.

[Excerpted from Bill Cara's Daily Report]

Notable spin surrounded the release of Consumer Confidence data,taking what looked like a negative opening to soaring heights throughthe day in US equity markets. Most of the gain happened in the first 90minutes, followed by churning action until the last ten minutes whenthe markets closed with a strong finishing kick.At the close, for only the second time in the past seven sessions,there were gains. In fact, the DJIA (8,473.49 +196.17 +2.37%), S&P500 (910.33 +23.33 +2.63%) and NASDAQ Composite (1,750.43 +58.42+3.45%) all were up. But, again, the volume was low.

Financial stocks held the market back again on Tuesday. The broad market indexes finished mixed after a final half-hour sell-off. NASDAQ was under selling pressure all day.

At the close, the DJIA (8,469.11 +50.34 +0.60%) was higher, but both the S&P 500 (908.35 -0.89 -0.10%) and NASDAQ Composite (1,715.92 -15.32 -0.88%) were down.

After ending Thursday with a sharp move higher in the last 20 minutes, closing near the session high, Friday started very strongly and was bid higher through the session, on stronger volume. Twice during the afternoon, at 2:00pm and again at 3:50pm through the close, there were sharp sell-offs.

At the close, the DJIA (8,076.29 +119.23 +1.50%) and S&P 500 (866.23 +14.31 +1.68%) closed well down, and NASDAQ Composite (1,694.29 +42.08 +2.55%) were much higher on the day, but Week over Week, there was only a small lift in the DJIA index and lower prices in the S&P 500 and NASDAQ Composite.

Stocks began Thursday moving south on lower than expected Existing Home Sales, rebounded and then dropped again, and then rallied off session lows at noon, ending the day with sharp moves down and then higher, closing near the session high.

At the close, the DJIA (7,957.06 +70.49 +0.89%) and S&P 500 (851.92 +8.37 +0.99%) closed well down, and NASDAQ Composite (1,652.21 +6.09 +0.37%) were higher, but not convincingly so.

There was not much action for a Friday despite a spate of earnings reports and reporting of economic data to consider.

At the close, the DJIA (+5.90 +0.07% to 8131.33, S&P 500 (+4.30 +0.50% to 869.60), and NASDAQ Composite (+2.63 +0.16% to 1673.07) were all higher, but barely.

Stocks in NY sank at the open following various negative reports from TV talking heads, though trade volume was weak on the Easter Monday. After the close, Goldman Sachs (GS) surprised with unusually positive revenue and earnings. Today, President Obama will be making a speech on the state of the economy. Traders are confused.

Monday was pretty much a lost day in the market. Very little of consequence happened. By the close, the DJIA’s small loss (-25.57 -0.32% to 8057.81) offset the small gain in the S&P (+2.17 +0.25% to 858.73), while the NASDAQ (+0.77 +0.05% to 1653.31) was flat.

Stocks closed Friday's session higher on a lightly-traded day, and the DJIA (Friday +39.51 +0.50% to 8017.59) and S&P 500 (Friday +8.12 +0.97% to 842.50) saw their largest four-week gains since 1933. The NASDAQ (Friday +19.24 +1.20% to 1621.87) saw its best four week gains ever.

One week ago and four weeks ago, when I opined that the equity market was lifting amidst all the negative economic data and yada yada from Talking Heads, the DJIA (7776.18) (6626.94), S&P (815.94) (683.38), and NASDAQ (1545.20) (1293.85) were much lower. I continued to advise to watch the data and ignore the economists who were being paid to agitate the public.

Coming on the heels of a selling squall late Monday afternoon, the Bears pressed their bets on the open Tuesday, but then quickly covered shorts as too many buyers emerged, lifting offers, and driving Financials, (XLF + 6.48%), Retail (XRT + 3.48%), and Semiconductors (SMH + 4.0%) sharply higher. The St. Patrick’s Day rally steadily gathered steam into the final hour with equities closing on the highs (S&P + 3.21% to 778.12). The NASDAQ Composite closed even stronger (+4.14% to 1462.11). The DJIA (+2.48% to 7395.70) was also higher.

The Toronto Composite gained +172.89 +2.06% to 8559.60, while the Toronto Venture Board was up +5.80 +0.68% to 853.12.

Equity market prices died after the opening hour and on shriveled volume slid lower for the rest of the day on Monday.

From about 10:30am through 4:00pm, traders hit the bids across the board. At the close, the DJIA (-79.89 -1.21% to 6547.05), S&P 500 (-6.85 -1.00% to 676.53), and NASDAQ (-25.21 -1.95% to 1268.04) were disappointing.