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.

February 24, 2010

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BERNANKE'S GIFT TO THE STREET

Wednesday investors were greeted by poor New Home Sales data and understandably reacted badly to it.  But that was just a warm-up act for Bernanke's testimony which assured bulls interest rates would remain lower for an indeterminate period.  (How about until hell freezes over or the Fed runs out of ink and paper?!)

The odd thing is gold fell with this easy money testimony while the dollar did little.  Crude oil rose sharply despite a greater than expected rise in supplies.

Volume was light and breadth positive.

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Continue to Concluding Remarks

Bernanke delivered the goods (cheap rates) to those (think "primary dealers") who know exactly what to do with it--trade the hell out of it.  It isn't nonsense to think this given the nature of "trading" profits earned and reported by those institutions.  Wouldn't you like to borrow at near zero and do the same?  Sure.  How does it help the economy beyond WS?  It doesn't and that's what folks are complaining about.  I'm just sayin...

Thursday is Jobless Claims and Durable Goods.  It will be interesting which of the two investors will hang their hats on.

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: UUP & TBT.

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

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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.