2:30 PM Buy Program Express: Dave's Daily

No question about it, these mid-afternoon Program Trading Express trains are, and have been, keeping markets from falling sharply. It's just the way of things nowadays.
Author:
Publish date:

Dave's Daily

By Dave Fry, founder and publisher of

ETF Digest

and author of the best-selling book

Create Your Own ETF Hedge Fund.

April 21, 2010

Image placeholder title

It doesn't take much talent or observational skill to note this familiar pattern of afternoon HAL 9000 "stick saves." It's been going on like this since the F-10 key was attached to trading desk computers and Primary Dealers were awash in liquidity. You will note within recent earnings statements from the likes of GS, JPM, MS and others the overwhelming percentage of profits earned from "trading" or whatever name they wish to call it.

The markets were hit with profit-taking despite terrific earnings reports from Apple and Morgan (thank you taxpayers) Stanley. A disappointing report from Abbott Labs dragged down the healthcare sector and worries about Greece resurfaced (getting old, default already!) but the trusty mid-afternoon Buy Program Express reversed negative index readings.

Further, you should find the video/broadcast interview I did with Janet Tavakoli of Tavakoli Structured Finance interesting and relevant at

this link

as we discuss financial reform, derivatives and the Goldman Sachs lawsuit.

Volume was higher than recent recently especially if you considered today an "up" day.  Breadth was mildly positive to mixed per WSJ below:

Image placeholder title
Image placeholder title

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.

Image placeholder title

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.

Image placeholder title

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

Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title

Continue to U.S. Market Sectors, Selected Stocks & Bonds

Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title

Continue to Currency & Commodity Markets

Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title

Continue to Overseas & Emerging Markets

Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title
Image placeholder title

Continue to Concluding Remarks

No question about it, these mid-afternoon Program Trading Express trains are, and have been, keeping markets from falling sharply. It's just the way of things nowadays which sounds pathetic.

Earnings continue to roll-in pleasing some and disappointing others. Most earnings reports are beating expectations handily but investors may be getting tired. Some commentators were quoted saying, "these earnings beats are getting old." So too much of a good thing is boring I guess.

Below are some late trading summaries per MarketWatch:

Image placeholder title

Thursday will feature more economic data than earlier in the week with Jobless Claims, PPI and Home Sales data. Then there will be more earnings to digest.

Let's see what happens.  You can follow our pithy comments on

twitter

and become a fan of ETF Digest on

facebook

.

Disclaimer: Among other issues the ETF Digest maintains positions in: MDY, IWM, QQQQ, USD, DAG, EFA, EEM, EWJ and RSX.

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

www.etfdigest.com

.

Dave Fry is founder and publisher of

ETF Digest

, 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.