MARKET COMMENT
Dave Fry at ETF Digest, May 27, 2009
It sure looks like a replay developing to me. A “worse than expected” Treasury auction was the instigator today combined with little help from the ubiquitous “better than expected” news.
We have more news ahead (don’t we always) tomorrow (Durable Goods Orders, Jobless Claims and New Home Sales) and Friday (GDP, Chicago PMI and Consumer Sentiment) These have a lot of spin potential for either side in this tug of war and I think they may tell the tale going forward.
Volume is still on the light side but breadth undid yesterday’s big advance.
It does seem like a repeat performance from last week, but I believe the next two days will prove significant one way or another. After all, it’s the end of the month and tape painters will be out. Besides, I’ve made a big prediction—up, down or sideways!
Other than some scattered positions we’re heavily in cash. One day we feel stupid then the next okay. As ETF Digest Sacred Cow VII advises:
AT ANY GIVEN TIME, THE MARKET CAN MAKE ANYONE LOOK LIKE AN IDIOT–ALWAYS.
Let’s see what happens over the next two days.
Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, TBT, BWX, UDN, GLD, DBC and DBA.
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.
