How wonderful that you are reading to your daughter every night, and that she is internalizing the stories and retelling them!  Reading to your child is one of the most important things you can do to help her be ready for formal schooling, so you are off to a great start.  It is normal for children who are read to to begin retelling or "reading" books, and is a sign that she enjoys reading and wants to continue learning about books.  Choosing the same books over and over is also normal, it helps children to memorize them, and is perfectly acceptable, but adding other books is good too.  I would suggest you find out about public library story times available to you, and to attend some with your daughter.  Library story times often involve finger plays and songs as well as stories, and will introduce your child to new books - not to mention the opportunity to borrow books, CD's, movies, etc., plus time in a small group setting with other children.

Keep up the good work!
Paula Beckerman
preschool teacher

Great JOB! Now, have her slow down & point to each word as she "reads" her books.  One way she will learn "the" is by seeing it in print-over & over & over again! You cannot sound it out. By pointing to the words as she reads (you might have to hold & guide her pointer finger to each word until she gets it) she will begin to remember that those three letters t-h-e together always spell the. What she is doing is what we call "pretend reading" and it is one of the beginning steps of reading.