MARKET COMMENT, Courtesy of David Fry of ETF Digest, Dave’s Daily. Lots of charts, conclusion – market very oversold.
Daily Comment, June 24, 2008
“Put your seat back forward.”
Well, my travelin’ days are over for awhile. When boarding the plane in LA to return I noted with sadness George Carlin’s passing. And, when the flight attendants gave the above noted obligatory command I couldn’t help but remember his irony: “How do you do that?” he’d joke.
RIP George.
So, what’s been goin’ on while travelin’? For us conferences, interviews and panel discussions while for Mr. Market, more selling.
To say the market is oversold is an understatement especially with the cumulative negative breadth. [Again, forgive Yahoo/Finance’s math…they know not what they do.]
The cumulative negative breadth is what feeds the McClellan Oscillator’s reading.
Stocks are oversold based on the cumulative selling as noted by the McClellan Oscillator. Despite the drumbeat of bad news sellers can become exhausted and leave themselves prey to a short-squeeze. Such an event would need a catalyst. Where would that come from? Of course energy, housing, consumer sentiment and better economic data would be important, but you know that.
It’s good to be back.
Have a pleasant evening.
Disclaimer: Among other issues the ETF Digest maintains long or short positions in: SDS, SCC, SIJ, SRS, IYR, TBT, EFA, EFU, IEV, EEM, EEV, ILF, EWZ, DRR, DZZ, GLD, DBA, DBP and FXP
