This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Friday the 13th Meltdown: Dave's Daily

Stock markets are getting sloppy and appear rolling over. I've posted plenty of warnings about this given "normally" reliable DeMark monthly chart readings. Coincidentally it's curious these indicators present themselves as the Fed is winding down QE2 ("they say") next month and when the "sell in May and go away" maxim is present.

Previous stock market rallies have been propelled higher on ultra-light volume following heavy Fed liquidity injections (POMO) to Primary Dealers. These rallies have been met by comparatively higher volume sell-offs masking deteriorating conditions.

Evidently, the weaker dollar combined with liquidity injections has been bullish as multinational company earnings swell as a result. Brief dollar rallies, such as Friday, have caused sell-offs.  

Higher risk sectors, whether commodities or emerging markets have paid the heaviest price given intraweek volatility.

Some signs of a rollover are present with talk of stagflation and increased volatility in commodity markets. The latter have been especially manipulated to suit some purpose known only to insiders since the statement from the CME below is baloney:

"Margins are set as part of the neutral risk management services we provide. They aren't a means to move a market one way or another, or to encourage or discourage participation from one kind of market participant or another. Rather, margin is one of many risk management tools that help us assess overall portfolio risk to protect market participants and the market as a whole." Kim Taylor, CME


We suspect the phrase "protect market participants" includes, in this instance, some large banks heavily short silver that were being squeezed. And, that's just the beginning of the potential suspects.

Despite all the volatility most market sectors closed the week flat which reinforces the notion that it truly is, even excluding congress, the greatest show on earth.

Stock sectors with the highest betas or volatility (EMs, BRICs, Small Caps and so forth) experienced the greatest losses on Friday while stodgier sectors (Consumer Staples) were less affected.

Volume was a little heavier than on recent days but still lower than Thursday. I guess some of Day Boyz headed to the Hamptons early. Breadth per the WSJ was quite negative.

You can follow our pithy comments on twitter and join the conversation with me on facebook.


Continue to U.S. Sector, Stocks & Bond ETFs
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
TLT $121.55 0.32%
DJP $24.74 -2.20%
FXE $110.43 0.35%
USL $21.19 -5.30%
RMBS $13.41 -0.15%


Chart of I:DJI
DOW 16,181.28 -346.75 -2.10%
S&P 500 1,934.21 -37.97 -1.93%
NASDAQ 4,704.7330 -71.7750 -1.50%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs