MARKET COMMENT
Dave Fry’s ETF Digest, August 19, 2009
Today I felt certain markets would decline, and they did so out of the gate. Since we’re primarily long and staying systematic I wasn’t feeling good initially. So after kicking the dog and yelling at the nice old woman next door, the Mrs. and I headed to our scheduled home inspection today. Upon our return 30 minutes before the close I noted markets were inexplicably up. What happened? Oil prices rose substantially and that fueled stock market gains so we’re told. Sounds strange but true. Here’s the reasoning (convoluted perhaps): a drop in energy supplies is a sign of rising demand, economic recovery and, Holy Green Shoots Batman! markets had to move higher.
You can’t make this stuff up.
Treasury bonds rallied and the dollar fell. It’s all quite strange actually since the former is a safe haven while the latter is inflationary.
The bottom line—“ours is not to reason why, ours is but to do and die.” Somewhere between Simpson and Tennyson is the truth… continue here.
A few of Dave’s charts:
