MARKET COMMENT
Dave Fry at ETF Digest, April 6, 2009
One can never know which is which? All I know is when the underlying trend is bullish Monday’s are often buying opportunities as things generally improve throughout the week with perhaps some squaring-up on Friday. That’s about the boldest observation I can make today.
What should drive prices this shortened week are earnings reports. If poor earnings continue, as expected, then beating lowered expectations will be the bullish game.
Since markets were short-term overbought at the end of trading Friday, some profit-taking or even sideways action is healthy.
What was clear by the close is ultra light volume and breadth was negative which eases extreme conditions.
I believe traders must be on holiday somewhere warm and tropical. Maybe they’re at GITMO? Some, or at least their bosses, might belong there.
It was pretty shocking to hear from subscribers that they couldn’t buy DBA or DBB at Merrill Lynch, or whatever name they’re now going by. This is one of the dumbest things I’ve heard in a long time. Why anyone would maintain an account at a firm so behind the times is beyond me. Not only can’t they provide excellent products to their clients, they can’t take care of their own house.
This is a short week as you know and some earnings will start to roll in. It will be interesting to see how these are spun.
Let’s see what happens.
Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, IGM, FDN, XLF, XLI, XLY, DBV, DBC, DBA, DBB, DBC, USL, XLE, MOO, EFA, EEM, EWA, EWC, EWZ, EWY and FXI.
The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward.
