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

Market Volatility Remains Crazy: Dave's Daily

You don't need me to tell you how difficult it's been recently to gain comfort with and maintain portfolio positions. The swings in action and mood have driven a lot of investors away. Today I updated one of our Top 10 ETF sectors-- Industrials. The previous update was in early July. What stood out from this and other equity ETF sectors was the dramatic declines in AUM (Assets Under Management) for each ETF. AUM routinely had dropped over 40% and trading volume for many had increased by an equal percentage with the latter indicating selling. This is similar to equity mutual fund redemptions and debunks the notion investors are just switching to ETFs. The bottom line is all this volatility is a major turn-off.

HFTs have added to this volatility and shortly we'll be featuring an explanation of how these programs work in real time plus how their presence is affecting markets.

Wednesday's stock market about face was occasioned by the often unreliable ADP report which showed private payrolls adding 110K which beat estimates of 100K. However, the previous report was revised to 116K which means a decline which wasn't well mentioned by the financial media. Bulls also hoped the Fed might launch QE3 which isn't happening yet. But more Fed governors are clearly anxious to implement it which energized bulls. It's unfortunate that these "tools" seem "transitory" since they only pump stock prices but empirically haven't relieved joblessness or helped housing. It's not positive the Fed reduced GDP growth for 2011 to 1.6% and lowered 2012 to 2.5-2.9%. Bulls can ignore poor data as they believe QE3 is then more certain. The Fed also remained pessimistic regarding unemployment stating it should remain at these levels, and improving only slightly in 2012.

Market leaders Wednesday included financials (XLF) which were battered by euro zone news leading to a short squeeze absent further news.

Meanwhile, across the pond, EU leaders are plenty pissed with Papandreou's ill-timed referendum gambit. Let's remember, he's a socialist which helps explain much of this thinking and Greece's overall policies. EU leaders are trying to fence-in Greece telling them they have no choice but to accept "the plan" period. If Greece seeks to go their own way they'll get their wish putting them back on the drachma.

Gold advanced while the dollar fell slightly. Bonds were slightly weaker while oil advanced on bullish forecasts and other commodities were mixed.

Volume was below yesterday's sell-a-thon and breadth per the WSJ reversed to positive.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MS $27.23 0.00%
BAC $14.80 0.03%
AA $11.15 0.00%
KBE $32.65 0.00%
KRE $40.54 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs