MARKET COMMENT
Dave Fry at ETF Digest, April 13, 2009
The line from the Eagles “Tequila Sunrise” seems apt if you hate this market but still must stay systematic. Three Monday’s in a row we open lower and close higher than the open making doing so a profitable exercise.
Today seemed all about getting the banks healthy (I gag at the ongoing cover-up and Ponzi scheme) and helping Goldman Sachs get a deal done.
With most European markets closed today volume remains quite low and breadth was neutral.
Was that enough charts? Holy blue lines Batman! Well, I had to make up for last week’s slimmer postings.
Look, I don’t care what anyone says, volume matters. This rally is impressive certainly but so far it’s just Da Boyz having some fun and making money with TARP funds. Tomorrow we get more data and folks get back to work in earnest.
No, I don’t like the markets emotionally nor do I like what’s happening to our country. But, in the scheme of things, my role is to press on implementing our systems. Not doing that leaves me and our subscribers adrift.
Goldman Sachs needs to get a deal done. The syndicate put together knows they need to circle the wagons and prop prices to the level necessary to satisfy GS period. After 35 years of doing this I can say I’ve seen this movie before.
Earnings matter and we’re getting in the thick of them. Bulls will spin bad numbers as “old news” and pump stocks. Bears seemingly are sold-out and in hibernation.
And, thanks everyone for the kind emails wondering if I was ill. Nope, I just was recuperating from a minor procedure where a sedative made me a little fuzzy. So you probably think I’m a drunk or something. Well, no……but, it is 5 PM so….
Let’s see what happens.
Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, FDN, RSP, XLB, XLF, XLI, XLY, IYR, TIP, LQD, FXA, DBV, DBC, DBA, DBB, DBC, USL, XLE, MOO, EFA, EEM, EWA, EWC, ILF, IFN, EWH, EWM, EWJ, EWZ, 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.
