MARKET COMMENT
Dave Fry at ETF Digest, February 23, 2009
So we move to more trial balloons as the new administration tries another deal that may help Prince Alwaleed and Sandy Weill’s (cough) legacy.
But it was another Bronx Cheer for the new administration’s repeated remedies. A small gap opening higher was all bulls could muster and it only lasted a few minutes before sellers took complete charge.
Volume was average but breadth was horrible and with a little more time we’ll see if it was a 90/10 day on the downside.
Another trial balloon shot down. Since Obama was elected SPY is down 23% which only means the problems we’re experiencing are deeper than lofty rhetoric can cure. But, all these baby steps aren’t being met in the markets by any enthusiasm.
I can’t say we’re happy to be so heavily in cash when there seem such excellent shorting opportunities but markets are ridiculously oversold. The markets have been the playground recently for day-traders. That includes trading desks and hedge funds. In the meantime, we can only keep our powder dry and wait patiently.
Let’s see what happens.
Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, GLD, DBP, DGP and GDX.
