April Fools & Market Bulls: 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 1, 2010
APRIL FOOLS
Global growth is in the air as investors seized on reports from Asia, Europe and the U.S. to bid markets higher. In Asia the Chinese PMI (Purchasing Managers Index) rose sharply from 52 to 55. Manufacturing data was also strong in Taiwan, South Korea and Australia. A survey of 3000 euro-zone firms also showed increases in data as the fastest in over three years.
Jobless Claims in the U.S. were about as expected or "crummy" but unemployment isn't an issue for bulls it seems. Neither evidently is current construction spending which was below estimates. But, bulls seized on a stronger ISM Index which when combined with positive overseas data gave them the ammo needed to push stocks higher.
Volume was as light as you might expect for a pre-holiday trading day. Breadth was flat to positive.
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All's well that ends well? The economic reports globally were impressive and that's the kind of fuel bulls need to keep trends going. Remember, the news
follows
the trend and if trends are strong we'll find the news to justify it. Much of the feedback I get are from good people who hate this market. I can say, I don't like it either; but, the tape is the tape no matter the house of cards it's built on.
Oddly, Friday with markets closed the government will release unemployment data for March. It's a strange thing to do. Either they want to slip one by us or are brimming with confidence. I'll be looking for it tomorrow before eating my Easter Eggs.
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: RSP, MDY, IWM, QQQQ, XLF, KBE, KRE, XLB, XLI, XLY, IYR, TBT, TWOZ, YCS, UCO, USL, EFA, EDC, EWA, EWC, EPI, EWJ and XPP.
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.
