MARKET COMMENT
Dave Fry at ETF Digest, April 7, 2009
The headlines read that investors are worried about earnings? Oh, those pesky things again. But, that’s what we wondered about just yesterday. With markets still somewhat extended looking for a cue to exit isn’t surprising. If markets were lower bulls would spin bad earnings as “better than expected” or “not as bad as feared” and etc. Now it’s just an opportunity to take profits and gauge conditions after the Easter break.
This sell-off remains a very low volume affair and shorts should be really careful messing around here since the potential to underestimate bulls is enormous. Nevertheless breath today was negative.
So, now investors are interested in earnings. Okay, it’s about time. Just don’t believe the BS bulls put-out to the financial media that PEs are cheap.
With prices still extended from the previous rally any excuse to head to the exits exists. But, volume is unusually light and may have more to do with the impending Easter break than serious news.
It shouldn’t surprise if volume continues light or even shrinks further into tomorrow and Thursday.
I forgot to thank everyone who sent condolences and kind emails regarding the passing of our friend Greg Newton. I’ve received so many that my email inbox overflowed. Greg’s surviving relatives are his siblings in New Zealand and Australia. At their request, I’ve forwarded many of your comments to them and they’re very grateful.
Let’s see what happens.
Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, XLF, XLI, XLY, DBV, DBC, DBA, DBB, DBC, USL, XLE, MOO, EFA, EEM, EWA, 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.
