MARKET COMMENT
Dave Fry’s ETF Digest, May 26, 2009
There they go again, jumping all over themselves buying on any shred of good news. Today consumer confidence data got them all jazzed up. Just remember two things: the markets had gotten a little oversold and bulls (trading desks and hedge funds) are the major players currently.
Volume continues to be on the light side but breadth was excellent.
So, it’s that “better than expected” deal again, eh? Ignore the “worse than expected” housing data and focus on what suits your purpose. But, again, it’s been a trader’s market. We’re also approaching the end of the month in just a handful of days so there’s a desire to make things look good. It’s the way things work.
The bond market is the big loser and it’s about time. The worse it gets the bigger a drag that may be on stocks.
In the bag of tricks department is the Bloomberg story I alluded to in the financial chart which outlines the accounting trickery for banks like JPM in their WaMu transaction.
The best news of the day comes from healthcare. Since many of you have written and expressed your concern I’ll let you know the doctors have given us good news for Francie. She probably won’t need chemotherapy or radiation. This has surprised them and us in a great way. Now, the only problem is the Fryguy here has pneumonia, but that will go away soon enough. I assume despite the medications this report was lucid…er, right?
Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, TBT, UDN, DBV, 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.
