MARKET COMMENT
Dave Fry’s ETF Digest, May 13, 2009
Retail sales and foreclosure filings were, ahem, “worse than expected”. Markets have been looking toppy and moving around on light volume as indicated in previous postings. But dip buyers have been persistent even when the news was bad but spun as “better than expected”. Not so today.
Breadth was decidedly negative but volume remains modest.
Dave’s Daily turns to daily charts since occasionally, like now, they’re significant. You can see clearly how many markets have responded to the 200 day Moving Averages. Sometimes these act as resistance and then support if surpassed.
Markets often end a run in an ugly manner and this may be what’s taking place now. It’s really hard to know but clearly the news hasn’t supported this major rally despite stress tests, green shoots and other happy talk. For a trend follower, the news must follow the trend. That’s the fuel any trend needs whether bearish or bullish. I don’t see the supportive news. The markets are getting oversold and Da Boyz could step in at any time to push things back up. They have a lot at stake in that regard.
Finally, I won’t be publishing tomorrow as my wife will be undergoing surgery tomorrow and I’ll be at the hospital all day.
Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, MDY, IWM, QQQQ, XLY, XLB, XLU, IYR, IEF, TLT, TBT, UDN, DBC, DBA, MOO, EFA, EEM, EWZ, IFN 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. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com.
