MARKET COMMENT
Dave Fry at ETF Digest, March 11, 2009
It was that kind of day. Investors wanting some follow-through got some early but then some realists entered the picture and things got a little “iffy”.
Bulls are still encouraged by the idea that the government won’t let any large bank or manufacturer fail. They think it’s safe then to buy stocks in firms that many feared would be worthless. Is the jury still out on that notion? Possibly.
We’re still on the sidelines for the most part. Markets got the oversold bounce we were expecting given all the empirical data for this possibility we posted yesterday.
Volume today wasn’t impressive nor was breadth as Dave Hurwitz lets us know.
I spent the better part of 7 hours today dealing with support people at Dell, ATI and McAfee today since my PC crashed. I think “support” is misnamed and the antonym “frustration” would be more appropriate. Toward the end of these conversations I was ready to throw the PC out the window.
Well, enough about the Fryguy’s day, eh?
Bulls think today was a great victory in that there wasn’t another reversal. Bears on the other hand didn’t see any bullish follow-through. Me? So far I just see a low volume oversold short squeeze. But, I could be mistaken and only time will tell. But, overall I’m comfortable on the sidelines despite a few small positions that are frustrating in their trends.
There may be some fun and games as traders start the rollover process from March stock futures contracts to June. But, it seems there’s always something.
Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, GLD, FXE and DBB.
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 for forward.
