MARKET COMMENT
Dave Fry at ETF Digest, June 2, 2009
Sometimes fellow bloggers, subscribers and clients offer the best information. Friday, blogger Kurt Denninger offered his take on Friday’s big time ramp. And, this morning a poster on this blog with the moniker “basehit” hit a home run with his/her note on “why” Friday’s stunning jam job occurred—Wall Street had stock to sell you! Others added to this observation astutely since TARP money needs to be repaid (who knew?) and it will come from the assets of clients. So, Morgan Stanley, American Express and J P Morgan (rumored to have launched the buy programs Friday late) were all dumping stock to the sheeple.
It’s more of the same games being played by those who can do it.
So, now that things were nicely propped and markets tame today, deals got done. There’s nothing like other people’s money right? Sure, I’m a cynical old goat! Who wouldn’t be in this house of games?
Meanwhile let’s move to today’s results. Volume is about the same as we’ve seen these past few weeks—light to moderate. Breadth was basically a push today.
As long as Uncle Sugar keeps the primary dealer network lubed with printed money, Da Boyz will keep things pumped up. Eventually, real earnings from corporations and wages for individuals will have to come through. Then consumers will spend and buy homes. Until then it’s just a game being played by those who can with other people’s money. Sometimes, often lately, I’m embarrassed to be in this business.
Not many people, other than Wall Street honchos getting fat on taxpayer money, like what’s happening. But, we press on.
Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, TBT, UDN, GLD, DBC, DBA, EFA, and EEM.
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
