Taxes? It Will Only Get Worse: Dave's Daily
Dave's Daily
By Dave Fry, founder and publisher of
and author of the best-selling book
Create Your Own ETF Hedge Fund.
April 15, 2010
TAXES? IT WILL ONLY GET WORSE
Earnings still dominate news and stocks, but investors were a little less enthusiastic Thursday while volume was light again. Shrugged off most of the day was a poor Jobless Claims report versus a positive Empire Manufacturing number. Most companies were beating earnings estimates and the tepid response overall means much of this may be priced-in. Google reported earnings that beat estimates overall and immediately sold-off sharply. Why? Perhaps there was a "whisper number" that was much higher. Further, the CFO states they're going to spend money in the next quarter on M&A and promotional activity. Evidently, traders don't want company growth through investment but only short-term earnings growth.
AMD and Intuitive Surgical also reported after the close and both beat estimates. So the "beat" goes on.
Volume remained light but should pick-up substantially with options expiration tomorrow. Breadth was mixed with NYSE negative and NASDAQ positive per the WSJ below:
The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.
Per Investopedia: The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.
Per Investopedia: The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
Continue to Major U.S. Markets
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Continue to Concluding Remarks
Okay, taxes paid. Next will be the surcharges. Someone's gotta pay right? The attitude now is we'll worry about that later.
Well, good old Google is getting smacked after the forward looking growth of 2% in the next quarter was below the 3-4% expectations. Why? Because they're going to spend a lot of money on M&A and growing the company for the long-term. This doesn't sit well with short-term traders. Besides its options expiration tomorrow and Da Boyz in the pits will have fun with outstanding strike prices.
Below is what's going on in after hours trading per MW. Google's big hit is hurting everything else.
Friday will feature earnings from Bank of America, Gannett, Mattel and General Electric. Also we'll get Housing data and Michigan Consumer Sentiment. The latter should be interesting given the run consumer stocks (Chucky) have been on combined with Jobless data.
This post was deliberately short since I got a late start on things. However tomorrow I'll be participating in a live Q&A session hosted by Charles Kirk of
The Kirk Report
on Friday, April 16, 2010 at 10 am EDT.
Discussion will focus on ETF trading strategies and "big picture" market view while
soliciting real-time comments and questions
from our community of readers and subscribers.
If you'd like to attend the live strategy session, please register
HERE
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Let's see what happens. You can follow our pithy comments on
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Disclaimer: Among other issues the ETF Digest maintains positions in: MDY, MVV, IWM, TNA, QQQQ, FDN, USD, KBE, XLF, DGP, UUP, DBB, BDD, EFA, DZK, EEM, EWJ, EWY, EWA, RSX, EPI and FXI.
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
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Dave Fry is founder and publisher of
, Dave's Daily blog and the best-selling book author of
Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management
, published by Wiley Finance in 2008. A detailed bio is here:
Dave Fry.