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Dave’s Daily

MARKET COMMENT

Dave Fry at ETF Digest, May 28, 2009

The current rules are simple: 
 

  1. Use light volume to push your book and the financial media. (Bill Gross)
  2. Use government money to trade. (TARP)
  3. Paint the tape at the end of the month. (Business as usual)
  4. Ignore any bad news. (All the downward revisions to previous data today)
  5. Little guys should stay out of the way. (You and me?)

Okay, one day down and one more to go before the end of the month. Bulls got in a “relief rally” that bonds didn’t collapse after another auction. It’s a little too comical that Bill Gross comes on the airwaves to talk his book that bonds were good value now. It’s laughably transparent.

If bulls can bust it out of this range we’ve been in bully for them. Then the “sell in May and go away” maxim will be forgotten. Or, a “June Swoon”?

Volume did pick up some today but it’s still relatively light while breadth was positive.

We’ll do things a little differently today with daily/monthly views of just the major indexes and a few other key markets.

This is all I’m going to do today. As we wrap up May we should step back and look at just a few charts from short and long-term perspectives. I think it’s helpful—besides, I’m pooped.

If you want to play the game you first should know the rules. It wouldn’t hurt if you were a major bank that screwed-up big time. Then you’d get taxpayer money to trade.

The bulls have another shot at it tomorrow with GDP, Chicago PMI and more Consumer Sentiment data. Let’s see how they spin it since they did well today ignoring all bad data.

Disclaimer: Among other issues the ETF Digest maintains positions in: IEF, TLT, TBT, UDN, GLD, and DBC.

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.
 

 


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