MARKET COMMENT
Dave Fry’s ETF Digest, June 18, 2009
I thought it might be entertaining at least but the show was a bust—a bore—a ramped, camped and dumped deal. Bull’s got excited early with (ho hum) “better than expected” employment data and Leading Economic Indicators. Then financials got a lift from Turbo-Timmy’s testimony.
With quad witching starting you’d think we’d have more volume but there was little. Breadth was positive.
The McClellan Summation Index continues to rollover. Not a bullish for the intermediate term at least.
Let’s be honest; giving the Fed more control over the economy is just handing our economic future to the Primary Dealers (aka, money center banks) and those countries we’re in debt to. It’s scary and upsetting.
There’s nothing wrong with the financial system that couldn’t be cured by putting Glass-Steagall back together again. This would take the banks out of the brokerage business and kick the fox out of the henhouse. But that won’t happen given the entrenched powers that run all things in DC.
I thought we’d have a more entertaining day given news releases and the start of quad witching but, aside from the initial ramp, there was little of interest. The selloff in bond markets was ignored by headline writers for some reason. Their decline may be the reason markets were so constrained today. Tomorrow is another day and that should create more volume if nothing else. And, it looks like bulls jumped on RIMM late driving the price nearly 6 points off the low. This type of action reflects more options expiration nonsense no doubt.
Let’s see what happens.
Disclaimer: Among other issues the ETF Digest maintains positions in: MDY, QQQQ, IWM, GLD, DBC, USL, DBA, DBB, EFA, EEM, EWZ 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.
