This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Markets Are Getting Tired: Dave's Daily

Stocks in this article: DELL HPQ MSFT XLK TJX XLY TOL ITB

Clearly it's hard for markets to consistently produce 3%-5% monthly returns without taking a break. This is what we're now seeing absent--more positive news. Jobless Claims data Thursday should shed some light on conditions as will next week's Employment Report which needs to verify a better trend in conditions. Gallup is projecting an unemployment rate in excess of 9% again although they don't seasonally adjust like the BS BLS does.

We read yesterday some breathless financial commentators remarking that mutual funds showed the first positive fund flows since the previous January. That's a nice assertion, but January is always a time for people to invest for their IRA or 401K and so forth. Surprisingly ETF fund flow data from the previous bullish week showed $1.2 billion in outflows for both equity and bond sectors.

Basically, markets are just getting tired. We've remarked to members regarding weekly DeMark 9 count indicators which normally reflect "trend exhaustion". This is not to say these counts are perfect and may just indicate some sideways movement ahead. And, that's all we may be seeing despite how much liquidity global central banks are feeding bulls.

Meanwhile the SEC's Mary Shapiro said she's worried about HFT ( High Frequency Trading). Worrying isn't a policy. Wake me when you're on to something real.

China reported another decline in manufacturing via an early PMI report there. Europe also reported a PMI below 50 indicating economic contraction. Back in the U.S. the NAR (National Association of Realtors) continues its serial misstatements as the current report showed a 4.75% increase in pending home sales but the previous report was adjusted from a 5% increase to a .05% decrease. How does that happen? Don't they have computers?

Wednesday markets felt a hangover from a poor Dell (DELL) report as we await Hewlett-Packard's (HPQ) report after the close (which missed revenue estimates $30.04 billion vs 30.72 billion expected but was a little higher on "adjusted" earnings). TJX Corp (TJX) matched earnings estimates but Toll Brothers (TOL) missed reporting a small loss versus a small gain. The latter along with the untrustworthy report from the NAR pushed REITs lower (IYR) and Homebuilders (ITB). The lingering uncertainty regarding the Greek situation also pushed banks (KBE) and financials (XLF) lower.

The downside of all this global central bank liquidity is well-seen in energy and precious metals markets. Oil fell a few pennies but remains quite high and gold (GLD) continued to soar. The dollar was down slightly and bonds were stronger. There's a lot of posturing by politicians over who's to blame for recently rising gasoline prices. All politicians and bureaucrats should just look in the mirror for an answer.

Volume was once again ultra-light making it rather easy for HFTs to push things around even as little was accomplished overall Wednesday. Breadth per the WSJ was negative.


Join the banter with us on twitter and facebook.

SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details

IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details

QQQ - PowerShares Capital Management LLC is passionate about our goal of delivering the highest quality investment management available through one of the more benefit-rich investment vehicles ever created, the exchange-traded fund. PowerShares QQQ¿, formerly known as "QQQ" or the "NASDAQ- 100 Index Tracking Stock®", is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the Index.
See more details

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,651.86 +294.99 1.70%
S&P 500 2,048.61 +35.72 1.77%
NASDAQ 4,732.3450 +88.0330 1.90%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs