MARKET COMMENT
Dave Fry at ETF Digest, April 16, 2009
Investors are looking ahead as usual but what can you see through this fog of bad news? In 2003 we moved higher with little in the way of good news. The Iraq War was starting, mutual fund trading scandals were ubiquitous, Enron and other accounting frauds were revealed, earnings were poor, the dot.com bubble was in ruins and so forth. What was so great then that reignited bullish sentiment? The Fed and Greenspan’s low interest rate policy and his printing press.
So we fast forward to 2009 and we have a different cast of characters but the Fed interest rate policy and massive doses of liquidity have investors primed for a repeat performance. That’s all I can see with my binoculars—another bubble attempt in the making.
Today things got pretty pumped-up when bears couldn’t get anything going their way and that opened the door for the 2 PM Buy Program Express to hit the tape.
Volume increased today and breadth was quite positive.
The “forward look” used to be the tag line for Chrysler years ago and look where that got them. Nevertheless, bulls have the tape and are seeing happy day’s ahead you’d think.
The 2 PM Buy Program Express can’t be predicted too often or be on time. But, when things are quiet and bears seem spent its easy business for Da Boyz to prop things higher. Sometimes they can take it the other way but that’s not why the government gave them all this money.
GOOG reported earnings and they sold the stock a little after hours along with other tech names. They don’t call it the amateur hour for nothing.
I’m off to a doctor’s appointment so I don’t have time to say anything cool as we wind up.
Have a great weekend!
A NOTE OF THANKS FROM GREG’S FAMILY
Dave Fry, April 15, 2009
Greg Newton’s family in New Zealand has asked me to post this brief note of thanks to all who expressed their condolences.
Thank you all for your wonderful (mostly) thoughts about Greg you have all helped in the grieving process by letting us know how he had touched so many people.
We are in the process of having Greg returned to NZ.
Thank you so much from his family in NZ.
